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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: MeDroogies who wrote (24284)	4/22/1999 2:48:00 PM
From: Eric Yang	Read Replies (1) \| Respond to of 213177

"Eric, JR mentioned that the "poison pill" expired 2 days ago...can you elaborate a bit on that? " When a company's stock is trading at low valuation relative to fundamentals, earnings and future prospect, it often becomes attractive hostile takeover targets. To guard against someone from acquiring a majority stake of shares via the open market, a company would often pass what's called "poison pill" provisions. There are many variations of poison pill but the basic idea is that it issues new shares and gives existing shareholders the right to purchase these new shares at a discount. This increases the total number of shares at the expense of diluting the value of each share. Because this dilutes the portion of shares held by the party interested in the takeover, it makes it a lot more difficult for the hostile takeover to be successful. The goal of these "poison pill" is to force those who are interested in acquiring the company to establish dialog with the target company's board of directors. In the case of Apple, the "Shareholder's Rights" provision went into effect 10 years ago and expired on April 19th. If I read the terms of the "right" properly, it has no bearing on AAPL at the current price. Eric