GREY:LSTMF - Post by User
Comment by
naeden99on Apr 06, 2014 9:07pm
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Post# 22418547
RE:RE:Price Manipulation?
RE:RE:Price Manipulation?In practice shareholder rights plans are never actually exercised, they just give management more time to find a white knight in the case of a hostile bid.
If you read the text of the plan, there is generally a 'permitted bid' exception, usually if you don't take up and pay in less than 60 days.
In general a hostile bidder would try to get the court to strike down the rights plan so they could buy the company in less than 60 days, otherwise they would just extend the bid for that time period.