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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: George Coyne who wrote (17083)	4/24/1998 10:59:00 AM
From: TI2, TechInvestorToo	Respond to of 25960

I think the idea is to prevent the hostile takeover folks from coming in and buying the depressed / undervalued stock from nervous / greedy individual stockholders, at a better than market, but still cheap price. The raider then controls the company and may have different ideas on what to do with the companies assets ( like cash hoards ) and people ( do we really need all the RD guys, we're gonna be out of here in 3yrs?). Rights plan forces the takeover party to talk with the board, hopefully they can better negotiate the takeover and preserve the value of the stock and protect shareholders rights. Presumably the shareholder bought the stock based on the BOD plan and not some raider vision. Since the board works for the shareholders, its important to let them know what you think! IR depts help, so do letters, shareholder meetings etc. Of course if the board is doing their job, the company should not be vulnerable (EPS is good, Wall St informed so share price is good, new products, customers happy, etc) and rights plan is one way they are doing their job. So one way to look at the rights plan, is a vote of confidence in the BOD. Hope this helps, TI2