GREY:IPHAF - Post by User
Post by
wrongturnon Nov 06, 2007 9:15pm
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Post# 13764296
Poison Pill
Poison PillThe following was written in May of 2001:
"A hostile takeover isn’t expected, executive vice-president Joseph Koziak told shareholders at Isotechnika’s (TSE:ISA) annual general meeting. The plan is to protect shareholder value in the event that share price comes under pressure, he said."
"The plan, passed unanimously, would be triggered by any interest acquiring in excess of 20 per cent of outstanding shares. IN that case, existing shareholders could exercise a right to obtain an additional share for each one owned at a 50-per-cent discount, thereby diluting the company’s equity and foiling any attempt to gain controlling interest."
When they say 50% discount, I'm assuming they mean from the current market share price. Can anyone help me out here? Is this correct?