Replies to post #13674 on GTC Biotherapeutics (fka GTCB)

[gym gravity]

Dew must be asleep today. I think if anyone goes above 20% the poison pill pops out. LFB is a potential suitor, but I think they made it clear they wanted to be partners only.

anyway, here is the link in the read me first. It's not a formal analysis, quite a funny post though:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=25377457

It

Posted by: DewDiligence Date: Tuesday, December 18, 2007 12:48:40 AM
In reply to: croumagnon who wrote msg# 6416 Post # of 13677

>I assume that the poison pill provides management with huge stock voting shares to stop the takeover…<

The poison pill provides all shareholders except the prospective acquirer with additional shares, diluting the prospective acquirer’s equity stake to the point where a hostile takeover becomes untenable.

Moreover, a lot of the value of GTC is tied up in its know-how and human capital, and any company attempting a hostile takeover would be risking the loss of these assets.

In short, a hostile takeover is way, way down on my list of concerns as a GTC shareholder. It’s so far down on the list I don’t think it’s worth talking about unless someone like you brings it up.

[DewDiligence]

>Concerning the updated Change of Control agreements, just wondering to what extent the terms were changed…<

To find out, you’d have to read the old and new agreements word for word. This much is certain: the changes were not made to lessen the haul by executive officers.