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Whither the Poison Pill?

August 2009 Updated on 31 March 2010 Neil Henderson

The poison pill is a corporate strategy employed by a public company's Board of directors against potential hostile takeovers. The term "poison pill" has come to mean any method employed by a target company which acts as a deterrent to a potential purchaser. In its most common form, however, the poison pill is essentially the putting into place of a shareholder-rights plan, as a result of which a successful hostile bidder is then faced with the prospect of substantially inflated acquisition costs. Having fallen from fashion for a time, poison pills are increasingly being re-examined by Bermuda public companies.

 

To continue reading full articles in PDF format:
Whither the Poison Pill?

 


Neil Henderson
Director

BERMUDA   +1 441 298 7846


A version of this article was also published by EU Bankers.

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Articles

Whither the Poison Pill?

14 August 2009 Updated on 31 March 2010 Neil Henderson

The poison pill is a corporate strategy employed by a public company's Board of directors against potential hostile takeovers. The term "poison pill" has come to mean any method employed by a target company which acts as a deterrent to a potential purchaser. In its most common form, however, the poison pill is essentially the putting into place of a shareholder-rights plan, as a result of which a successful hostile bidder is then faced with the prospect of substantially inflated acquisition costs. Having fallen from fashion for a time, poison pills are increasingly being re-examined by Bermuda public companies.

 

To continue reading full articles in PDF format:
Whither the Poison Pill?

 


Neil Henderson
Director

BERMUDA   +1 441 298 7846


 

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