4 ms·

I’m pretty sure you can’t take a short position against the interests of your own company. That’s boilerplate language in the deals I’ve seen, for obvious reaso

I’m pretty sure you can’t take a short position against the interests of your own company. That’s boilerplate language in the deals I’ve seen, for obvious reasons.

busyant 6y ago
I think that was hyperbole to emphasize the imprudence of the takeover offer.
yellowstuff 6y ago
Carl Icahn may have found a way around this kind of restriction after the Lyft IPO by selling in a private transaction to someone who hedged in advance of the sale, although it's not at all clear what really happened. https://www.bloomberg.com/opinion/articles/2019-05-07/lyft-s-ipo-was-a-little-awkward https://www.bloomberg.com/opinion/articles/2019-05-07/lyft-s...
ertemplin 6y ago
Some companies will allow this, but only if it's a covered call or protected put on an investment that you own. The idea is that you're limiting your risk while also limiting the potential upside of the investment.