Two categories of preventive tactics to ward off hostile takeovers can be distinguished: a company’s changed status and “poisoned pills”. The former category has a strictly preventive character because it serves only as deterrent for a potential hostile bidder, while the poisoned pills begin to work only when a hostile bidder buys a certain amount of shares. Changed-status tactics can be divided into a dozen categories. They are increasingly used by American public companies. Opinions about such techniques are divided. Some think that they are not in shareholders’ interest.
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.