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Share Holder Rights Plans: the Poison Pill lessens the opportunity for hostile investors and corporate raiders to take control of public companies

A shareholder rights plan, also known as the “corporate poison pill” is a form of defensive tactic  corporate boards use to prevent a takeover by a bidder. This works by preventing takeover bidders form negotiating a price of sales directly with shareholders, instead forcing them to negotiate with the board. The plan gives shareholders the […]

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