Cross post from the RB:
By: KAA_the_XXVII
Reply To: 11759 by johndee Tuesday, 21 Dec 1999 at 8:16 AM EST
Post # of 11787
Johndee your Poison Pill answer and lets put the cards on the table.
A poison pill is a pretty generic term, but they care called that because they make a company sick, sometimes even kill the company. Personally I would never invest my personal money in a company that did these things... ever again. (JMHO)
But lately the investors have alot of concerns about that issue.
An old Reg S is a form of poison pill, as are floorless debentures, as are private stock placements (of any form) which are significantly below book value(Key concept is below book value.) Along with a couple of other considerations. So a poison pill can be used for many things not just anti take over provisions.
Now we could do something like that, kick open the printer and hang paper all over creation... but its not going to happen. Let me explain why it is not going to happen, because everyone around here have been working our collective a$$es off, for the last 16 months for long hours and minimum pay, building this company and stck value. (Dont forget us insiders are large shareholders) sorry but we are NOT going to dilute, harm or damage the stock price or set back all this progress and work, because of an unverified, vaguely threatened takeover attempt, that cannot win in a proxy vote. Which will be futile on their part and also why we need you the investor to consider what we have asked of you.
ANOTHER IMPORTANT CONSIDERATION ---> I asked that those of you that can (without a penalty) to convert your stock, to certificate form. This is a tool and leverage, which helps CVIA, fight this hostile situation, without even considering the poison pill route. This is a very important tool for us, since we are not dropping the "poison pill."
CVIA is the shareholders company, (you all should realize that after these past 16 months) any proxies, any votes or any other matters of this nature is decided by you and the other shareholders. Now there are those of you that do not want to convert your stock to certificate form, that is fine, that is your right.
But if this proxy is forced and you are out of the loop, due to brokers or the DTC, it is your own fault, not CVIA's... because we warned the investors of what could potentially happen and they know some of these entities move as slow as molassis in the winter.
CVIA management and BoD didnt ask for this situation, but do plan to make the best of it. Once the dust settles everyone will be asking how did he do that? Look at what the company is now as opposed to what it was ....
no poison pills.
If the hostile takeover is successful, then we make our exit...
no poison pills left behind.
Pretty simple stategy huh? That is why we feel if it comes to it, This is so important the shareholders have a say in this.
The day you see pigs and other large barnyard animals flying, is the day you will see me working for this group causing all these problems. They may manage buying the company, (if they get lucky) but not the CEO.
KAA
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