HP pops poison pill to beat off takeovers

Dom · Jul 23, 2003, 01:48 AM

A BRIEF ANNOUNCEMENT from HP late yesterday said that the firm has thrown the switch on a so-called "poison pill" provision.

These measures are taken to avoid people attempting to take over a company, but there can't be that many firms that could manage that feat.

The effect of the "poison pill" provision varies, but generally speaking if Mr Larry Ellison or Sam Palmisano comes along and tries to take over HP, new shares can be issued to increase the cost of the hostile takeover.

And HP also said that when senior executives had to flee the roost, their redundancy payments would need shareholder approval if the money was three times or more the amount of a suit's salary and his or her bonus.

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Source: TheInquirer

Jul 23, 2003, 01:48 AM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	HP pops poison pill to beat off takeovers A BRIEF ANNOUNCEMENT from HP late yesterday said that the firm has thrown the switch on a so-called "poison pill" provision. These measures are taken to avoid people attempting to take over a company, but there can't be that many firms that could manage that feat. The effect of the "poison pill" provision varies, but generally speaking if Mr Larry Ellison or Sam Palmisano comes along and tries to take over HP, new shares can be issued to increase the cost of the hostile takeover. And HP also said that when senior executives had to flee the roost, their redundancy payments would need shareholder approval if the money was three times or more the amount of a suit's salary and his or her bonus. _______________________ Source: TheInquirer