poison pill

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me78

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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.
 

MikeNewYork

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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
 
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MikeNewYork

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

You're welcome, but what is the "upper explanation"?
 

me78

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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
 

me78

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

MikeNewYork

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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.
 
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