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Strategies & Market Trends : Roger's 1998 Short Picks

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To: John Brickman who wrote (3177)2/19/1998 10:10:00 AM
From: Candle stick  Read Replies (2) of 18691
 
John, still confused why everyone thinks a rights offering is bad for CYMI....check out this link:

abcnews.com

I think this excerpt is particularly relevant:

Shareholder-rights plans often don't prevent takeovers, but
they do achieve higher bids by encouraging negotiation and
buying time for targets to seek a white knight.
Research by Georgeson & Co., a New York investor
relations firm, found that companies with poison pills sold for
8 percent higher than target companies without the plans.
Economist Robert Comment of Washington's Analysis
Group reports that poison pills actually increase the chances
of a takeover because they empower a company's
management to negotiate with potential purchasers.
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