Replies to post #6425 on GTC Biotherapeutics (fka GTCB)

[croumagnon]

"Perhaps you should do some rudimentary research into poison pills and how they work before positing about them"

Thanks for that thorough reply, I think! LOL...

I know enough about poison pills to know that they only work when the takeover offer is not substantially larger than the current pps. If someone were to offer shareholders $2 currently for their shares in the company, management would not be able to stop such a takeover even if they wanted to and even if the structure of their poison pill was impeccable. On the other hand, if the offer was for $1 per share, then the poison pill may come in handy. For an offer which is substantially larger than the current pps, shareholders would not allow management to stop the takeover even if they must go to court for that purpose...

If a company wants to make some sort of a low-priced takeover offer, it would make sense for them to first work the price lower and then make an offer which is well above the current trading point. I am not saying that is what is happening with GTCB but I am putting it out as a possibility for the reasons I mentioned in my original post...