"GTC’s poison pill is activated if LFB’s stake rises above 19.9%."
OK, but how does that exactly stop an LFB takeover?
I assume that the poison pill provides management with huge stock voting shares to stop the takeover, and that I am sure would work if for instance the offer is made for $1 per share when the stock is trading at $0.9. However, if the stock is trading at $0.9 and a takeover offer was made at for instance $1.8 (double) then many shareholders would want that to happen and management may not be able to stop the takeover because they would then have to content with their own dissatisfied shareholders that may sue management...
My limited knowledge of these issues tells me that poison pills work when the offer is not substantially above the current trading price but they are ineffective when the offer is 50% above the trading price or more. If my assessment here is correct, then the theory I advanced earlier regarding a low-priced CTCB takeover by LFB as say $1.5 may still be a possibility if our stock stays languished at $0.9...
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