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The poison pill was mostly developed at a time when the alternative was him selling all the company assets and leveraging the company to load it with as much de
by ameister14 5y ago
The poison pill was mostly developed at a time when the alternative was him selling all the company assets and leveraging the company to load it with as much debt as possible then give out as large a dividend as he could before selling off the stock leaving the company insolvent and everyone out of work.
So imagine a company taking $100 million in debt, giving all that out as a dividend then the stock price tanking through quick sales. Poison pill keeps the company going and avoids that fate.
- salawat 5y ago...Companies do not warrant immortality. I fail to see how a corporate vehicle being able to persist against those that have bought in sufficient stake to move policy makes any sense whatsoever.
- gengelbro 5y agoAnd this course of events is certain why? Because you've stated so?
- ameister14 5y agoYeah, I didn't say anything about it being certain. I was outlining why it was developed.