RE:RE:RE:Poison Pills some times not good. So, if Howie was truthful over the reason form posion pill, he might say the reason management opted for this tactic was because they feared for their jobs in the event of an equity investment. I mean, management has lots of cheap paper and will make lots of money on a buyout. So why take such a drastic step except to save managements as.sses.
Poison pills tend to protect poor managers. Companies that are the targets of takeovers are often subject to poor performance. The acquirer typically realizes that the target company has major room for improvement if managed properly. As a result, poison pills are instituted by management to protect their own jobs and, ultimately, deprive investors of a better management team.