3 ms·

Let’s say this happens and Musk buys a lot of the new shares so he now owns more than 15 % too. Does the pill get triggered again?

• elliekelly 4y ago
  No there’s usually language that it’s triggered once and that there are no other shareholder rights plans currently in effect. And since the plan states the price at which shareholders are entitled to purchase shares whether or not it was triggered “again” would kind of be a moot point because the price wouldn’t change and there are only so many authorized shares. And also it’s a silly hypothetical (even for a hypothetical) because I didn’t think it through at all: I’m pretty sure there is typically a cap on how many shares any one shareholder can buy when the pill is triggered. So it wouldn’t really be any help to Musk except that the “threat” of the poison pill would be removed and maybe some investors would be happy to cash in by quickly buying the poison pill shares and then selling to Musk. Also, if it were triggered I think it would be a bit of a logistical nightmare and things would probably be in flux for a few days before anyone could say who owned how many shares with any certainty.