Shareholders take aim at Sun

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Poison pills are a takeover defense.

So they protect current management only in that they prevent outsiders from buying the company.

The issue is not about executives, not directly, but whether Sun should be sold.

If many current stockholders believe Sun is worth more as a sale price than as a stock price, then we can expect the company to disappear or change beyond recognition soon.


As the article correctly notes:
Poison pills flood the market with additional shares of the target company, should an undesirable buyer attempt to take over the company. As a result, such plans can make unwanted takeover attempts prohibitively costly to pursue.

Posted by: Anton Philidor   Posted on: 09/22/05 You are currently: a Guest | Members login | Terms of Use

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