RE:RE:RE:HUGE accumulation in the U.S. market!
TheCardinal wrote: Everything you ever wanted to know about a
Shareholder Rights Plan, and how they work:
https://en.wikipedia.org/wiki/Shareholder_rights_plan
In the vernacular, they're often called "Poison Pills" but
that's mis-leading because they're really intended to
"poison" and thus thwart whatever Pack of Legal Larcenists
is trying to take over the target Company on-the-cheap.
Yeah, I'm not as big a fan for 2 reasons.
1] They are also criticized as management entrenchment plans making it harder to oust them. Some truth to this.
2] They delay, they don't poison. If evil buyers are trying to steal the company, the "plan" delays the timeline, it doesn't prevent it. The idea being, in theory, that shareholders will make better decisions if they have more time, the board will have more time to extract a better offer or pay the green mail to make them go away, or more time will enable a white knight offer to rescue shareholders from the bad guys. All good, in theory, but the fact is, it's only a delay tactic.
but it costs peanuts to implement, it can be reversed, it must be renewed at annual meeting, so sure, why not. Just expect it to save us.