RE: Jimmy - Poison Pill info.A big thank you, beech. Good question by Jimmy too.
I have two questions:
1. How does this work? Let say Endo buys BNC at $2. The current sp is $1. We get to buy additional stock at
.50? Where do these stock come from? Does BNC just print more stock? Or the management has to sell some of the stock being held by the company or the BOD? What is the limit of total number of additional shares we can buy? Proportional to the number of shares we hold?
2. A bigger question is, what if BNC spin off the human health unit first and then sell this spinned off unit to Endo. We are holding BNC stock that its sp is currently mostly based on its animal unit. How much do we get when they spin off the human unit? What's the use of buying more BNC (animal) unit when the real prize is in the human unit? If we get some spinned off human unit new shares from the spin off. I would expect the number of stocks will be very small because it does not constitute currently that much of the current sp of BNC. So in that case, if the additional shares we can buy is proportional to out holding of the human unit, we can only buy very little. BNC will get most of the profit. And the dilution will mean very little to Endo.
If the management wants to screw us. We are at their mercy.