User 165388

1 Comment

    • ON: Tue Mar 18th 16:51 PM
      Commented on:
      Kowabunga! is Communications Challenged
      George - The dividend that you're referring to is a "right" - also known as a poison pill. If an investor takes a 15% stake in the company, each holder of a Right (except those held by the Acquiring Person and its Affiliates and Associates) will have the right to purchase, upon exercise, Preferred Stock of the Company having a value equal to two times the exercise price of the Right.

      That means that shareholders can create more shares so that the purchase price gets prohibitively expensive.
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