Replies to post #124969 on Biotech Values

[DewDiligence]

Re: Poison pills

From a practical point of view, what does it actually mean that the poison pill provision is no more. Does it mean the company is inviting a takeover?

There could be an entire iHub board devoted to this topic. Terminating a poison pill—or letting it lapse without renewing it—is viewed by some investors as good corporate governance. It may indicate that the BoD has more interest in a buyout than it did previously.

APD’s pursuit of ARG (which ended with no deal being consummated) was a good case study of how courts apply the provisions of a poison pill. I posted about this case in #msg-55414136 and #msg-60025200. Regards, Dew