EPISODE · Dec 27, 2024 · 4 MIN
Flip-Over Poison Pill
from Legal English Innovation SAS · host Eric Froiland
This tactic, triggered when an acquirer surpasses a specified ownership threshold, allows existing shareholders (excluding the acquirer) to buy shares in the merged company at a discounted price. A key element is the conversion price, offering a significant reduction compared to the market value. The text uses a hypothetical example involving "Hostile Inc." and "Woke Inc." to illustrate how the strategy could dilute the acquirer's ownership and potentially deter a hostile takeover. The duration of the shareholder's right to purchase shares at the discounted price is also a critical component.Need Classes? Legal English innovation has several classes weekly, focusing on commercial law and other areas to help you communicate better with your clients.+57 320-315-4781 Follow us on Instagram!Friends on Facebook? Like us on Linked In?
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Flip-Over Poison Pill
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