Preference shares aren't for fighting imaginary 'hostile takeovers' REVO directors use preference shares to remove money and assets from the holders of ordinary shares. Preference shareholders are entitled to receive their investment returns before ordinary shareholders. That's the nature of preference shares. Any cash received from Eyetalk365 will be used to pay REVO directors, and/or their associates holding preference shares. After the directors and preferred shareholders are paid there will be nothing left for ordinary shareholders. Simple.