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  1. #1

    poison pill

    Does anybody know why are poison pills (=anti-takeover measure)destructive?: Here a possible answer ,which I don't understand, can somebody explain it to me:
    If it were used too often, a competitor planning a takeover could try to entice the target to employ a poison pill strategy by spreading rumors of a takeover attempt, starting a visible acquisition of stock. After the negative effects have set in, it may actually be cheaper and easier to execute the takeover.

  2. MikeNewYork's Avatar
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    #2

    Re: poison pill

    Quote Originally Posted by me78 View Post
    Does anybody know why are poison pills (=anti-takeover measure)destructive?: Here a possible answer ,which I don't understand, can somebody explain it to me:
    If it were used too often, a competitor planning a takeover could try to entice the target to employ a poison pill strategy by spreading rumors of a takeover attempt, starting a visible acquisition of stock. After the negative effects have set in, it may actually be cheaper and easier to execute the takeover.
    Try this link. Some poison pills can be detrimental to the target as well as the potential acquirer, but some are not. Some don't materialize until and unless the company is taken over.

    http://en.wikipedia.org/wiki/Poison_pill
    Last edited by MikeNewYork; 02-Oct-2006 at 17:44.

  3. #3

    Re: poison pill

    thanks Mike, I've read it already but I use the upper exlanation

  4. MikeNewYork's Avatar
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    #4

    Re: poison pill

    Quote Originally Posted by me78 View Post
    thanks Mike, I've read it already but I use the upper exlanation
    You're welcome, but what is the "upper explanation"?

  5. #5

    Re: poison pill

    look the first topic of me, I have already written it.

  6. #6

    Re: poison pill

    do you know the difference between "franchising" and "industrial licensing"
    "franchising": someone gives me certain rights to manufacture and sell a product, to use its trade mark , commercial and technical know-how but I am required to comply with the organisational standards of a business organisation
    "industrial licensing": someone permits me to use a patent under payment of a fee usaully for a limited period of time

    maybe here the company uses only the right and not selling or producing and franchising is used for producing


    2) and just one more question
    which one is a public tender offer: the tender or the take-over-bid (=tender offer, friendly, unfriendly) I am not sure

  7. #7

    Re: poison pill

    I 've got it, franchising is a form of licensing, and it has more closer relationship to the retailer

  8. MikeNewYork's Avatar
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    #8

    Re: poison pill

    Quote Originally Posted by me78 View Post
    I 've got it, franchising is a form of licensing, and it has more closer relationship to the retailer
    Good. One other thing. In some cases, franchises are actually owned by the franchisee. Even at that, they have contractual relationships with the franchisor.

  9. #9

    Re: poison pill

    thanks

  10. MikeNewYork's Avatar
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    #10

    Re: poison pill

    Quote Originally Posted by me78 View Post
    thanks
    You're welcome, me. [That sounds odd.]

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