Foreontee. Yes they do have poison pill. You can read about it on NV website in the archive section of press releases. I will warn you. Good luck on understanding it.
I was reviewing the shareholder's rights plan and had a few questions. Each time I read it I get more confused about how exactly it would work. Does the 200$ price per share to excercise the rights go towards buying shares at a 50% discount? Or do we shareholders need to pay additional money to actually purchase the shares at the 50% discount? So would one end up with a non-whole number of shares? Does the person purchase these directly from the company or does it kick in automatically? What would this do to the shares outstanding? Would more shares have to be authorized?
If you could explain how this "poison pill" works in laymans terms I would appreciate it. ---------------------------------------- (JH) Good questions. This concept is confusing but you have hit on the essence of the advantage of doing a shareholders rights plan. If the plan were to kick in, current shareholders, excepting the party wishing to take over, would be permitted to purchase shares at a 50% discount at current market price. This in effect would dilute the percentage ownership of the hostile party as those shares would come from the company. For the hostile party to actually take control, they would in effect have to buy out existing shareholders at a price of $200/share. A shareholders rights plan doesn't prevent a hostile takeover, it just makes it profitable for the shareholders to give in. History has shown this method to be very very effective.
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