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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?


To: Sector Investor who wrote (11117)10/31/1998 1:02:00 AM
From: George Dawson  Read Replies (1) | Respond to of 42804
 
Sector Investor,

Better methods are summarized under the general topic of "poison pill" techniques. Examples would include authorizing shares but not issuing them except in the event of an attempted takeover. In that case the nonissued shares can be sold to dilute the shares of the concern attempting the takeover or sold to parties friendly to the company and who would vote for the company. There are other techniques, but I think this conveys the general idea that there are business techniques that have certainly been used by other companies and would lead to dilution only in the necessary scenario. These strategies can be included in SEC documents, so the potential takeover entity would realize they are ill-advised to try.

All IMO - I am not a financial expert.