(Total Views: 664)
Posted On: 02/24/2022 2:09:48 PM
Post# of 154053
Sorry this makes absolute no sense.
So you assume CYDY gets taken over for e.g. 20 billion USD and the new owner will then deliberately default on the few millions of the Welch debt because ... the new owner is stupid, or what?
If CYDY defaults on its Welch debt (there is a certain timeframe until CYDY has to pay back the debt with interest), then there would not be any takeover because CYDY would be basically an empty shell with lots of debt. Shareholders would lose everything and Welch would own everything. How is this a poison pill, how is this any protection against a hostile takeover when shareholder lose everything?
So you assume CYDY gets taken over for e.g. 20 billion USD and the new owner will then deliberately default on the few millions of the Welch debt because ... the new owner is stupid, or what?
If CYDY defaults on its Welch debt (there is a certain timeframe until CYDY has to pay back the debt with interest), then there would not be any takeover because CYDY would be basically an empty shell with lots of debt. Shareholders would lose everything and Welch would own everything. How is this a poison pill, how is this any protection against a hostile takeover when shareholder lose everything?
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