Replies to post #50861 on InterDigital Inc (IDCC)

[Learning2vest]

Tornado, your expertise on shareholder rights provisions(i.e., commonly referred to as "poison pill", or "anti-takeover" provisions), is greatly appreciated. That's the kind of stuff that makes these investment forums so useful IMO, where else can we collaborate with folks who have deep personal experience in so many specialized fields??

I'm a retired enganeer educated at a state univ. Took me longer than I'm willing to admit to figure out what I posted about IDCC's "poison pill". Back comes advice and counsel from a Harvard educated specialist in drafting "poison pills"!! Yowser! Thank you Mr Lurgio and IHUB!

Never considered the possibility of restructuring the corporate governance provisions as part of the "anti-takeover" mechanism. Doing that REALLY throws a monkey wrench in the gears from a hostile takeover perspective. No way for a takeover group to estimate the potential costs(or the possibility of success regardless of the cost), before gaining ownership control of a target firm. Too many unknown variables.

Thanks for sharing your expertise in the discussion, tornado, it's always refreshing to learn something helpful. I knew that "poison pills" were a lot more effective than just the extra costs and special share mechanics that I could find, but did not understand where the real "stinger" was hidden. Assigning separate voting rights to the new class of shares triggered in a buyout, AND then hooking those special voting rights into the corporate governance provisions, Yikes! That finally explains how those "shareholder rights" provisions become very effective show stoppers. good on ya!