“Poison Pills” as a Negotiating Tool: Seeking A Cease-Fire in the Corporate Takeover Wars

Thursday, January 1st, 1987 at 12:00 am by Martin M. Cohen
Martin M. Cohen, “Poison Pills” as a Negotiating Tool: Seeking A Cease-Fire in the Corporate Takeover Wars, 1987 Colum. Bus. L. Rev. 459

This Note reviews inaccurate and contradictory interpretations of the function of poison pills in light of recent judicial decisions and underlying empirical evidence. The conclusion drawn is that poison pill plans must be designed to encourage bargaining between target management and hostile acquirers. While bargaining will not end the war of corporate takeovers, it will encourage management to cooperate with those who wish to make American business compete more effectively in the international market.

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