Another bidders' response to the powers target management acquired with the introduction of the poison pill
has come to be known as "proxy out".
The 2004 poison pill
plan was to thwart John Malone and Liberty Media Corp.
38) The foundation of Canadian poison pill
jurisprudence was set by the
34) As long as the jurisdiction in which the corporation is incorporated permits poison pills
, a board of directors generally has the ability to enact a poison pill
quickly and easily.
The board told investors that the poison pill
move is aimed at preventing any person or group from seizing control over the company by building up a controlling stake in the open market without paying a previously agreed premium.
The effectiveness of the poison pill
is illustrated by the 2007 takeover bid by billionaire investor Carl Icahn for Florida based homebuilder WCI Communities, Inc.
A poison pill
, or stockholder rights plan, is designed to prevent a hostile takeover.
Thirty nine firms had no device, either poison pill
4 million, a decision later upheld by the state Supreme Court, triggering the poison pill
as of March 1.
Providence said in a proxy statement that the poison pill
would delay the consideration of a shareholder proposal and discourage shareholders from communicating, for fear they would trigger the "poison pill
" and have a portion of their stock confiscated.
CEOs can also expect to take heat on staggered boards and poison pill
initiatives, which prevent any one person from buying more than a certain amount of company stock without management approval.
Shareholders voted to eliminate a so-called poison pill
, adopted in December 1998 to prevent a hostile takeover of 15 per cent or more of the company's stock and to reduce directors' terms to one year from three.
When shareholders targeted a company's poison pill
, it usually led to some action.
9% holding - the largest amount it could have without triggering the company's poison pill
defense - and then acquiring the rest of the stock at a later date.
The adoption of a poison pill
is an exemplar of an agency problem, in which the interests of shareholders (i.