GREY:ICMTF - Post by User
Post by
red2006on Nov 30, 2008 8:28pm
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Post# 15619446
increase in treasury
increase in treasury
The purpose of increasing the treasury is to prevent a hostile takeover bid. Company's can issue rights to existing existing shareholders to aquire more shares at a low price in the event another company makes a hostile bid. Before this increase the company was limited in what it could issue.
The reason for the move isn't for insiders to increase positions cheaply.IF insiders wanted to add to their positions they can have all they want out of the market.