Biotech Values

[DewDiligence]

Poison pill update (APD-ARG):

http://www.reuters.com/article/idUSN2525402320110125?feedType=RSS&feedName=mergersNews&rpc=43

…the ruling in the case could shape the use of the "poison pill" defense against hostile takeovers.

"If (the judge) allows the pill to remain, it's a big case. If he removes it, it's a big case, too" said Charles Elson [LOL], a professor at the University of Delaware. "It defines the legality of a pill."

Under Delaware law, which governs the majority of major U.S. companies, poison pills are meant to give directors time to evaluate a deal and make their case for alternatives. They have been criticized as a way for boards to entrench themselves by defeating a hostile bid that might provide a handsome return to shareholders.

The judge overseeing the case, William Chandler, is expected to rule quickly, possibly on Thursday when the hearings are scheduled to wrap up.