News & Analysis as of

Hostile Takeover Shareholders Corporate Governance

Kohrman Jackson & Krantz LLP

OpenAI's Governance Overhaul to Prevent Hostile Takeover

Strengthening Board Control - OpenAI is exploring governance changes that would grant its nonprofit board enhanced voting rights to prevent a hostile takeover by Elon Musk. This move follows Musk’s $97.4 billion bid, which...more

Robins Kaplan LLP

Constituency Statutes: The Overlooked Predecessor to the ESG Movement

Robins Kaplan LLP on

ESG—environmental, social, and governance—has been the new hot topic for the last several years. Yet companies are still trying to come to grips with what it means and how they can address these varying and often competing...more

White & Case LLP

In Japan, resistance to hostile takeovers fades

White & Case LLP on

Attitudes are shifting, thanks to changes in corporate governance - Japan has long resisted unsolicited takeovers. Despite the prevalence of such transactions in other large M&A markets such as the US and in Europe, never...more

Skadden, Arps, Slate, Meagher & Flom LLP

Delaware Court Enjoins an ‘Extreme’ Stockholder Rights Plan

On February 26, 2021, Vice Chancellor Kathaleen S. McCormick of the Delaware Court of Chancery permanently enjoined a stockholder rights plan — or so-called “poison pill” — with a 5% trigger that The Williams Companies, Inc....more

Fenwick & West LLP

Considerations in Adopting Poison Pills in the COVID-19 Environment

Fenwick & West LLP on

Market volatility arising from the COVID-19 pandemic may lead to increased hostile takeover activity and shareholder activism as some companies experience market valuations that they believe are not reflective of their...more

WilmerHale

COVID-19: Revisiting Shareholder Rights Plans

WilmerHale on

The turmoil in US equity markets created by the COVID-19 pandemic has resulted in many companies facing depressed stock prices, leaving them vulnerable to unsolicited acquisition proposals or activist activity, which has led...more

Latham & Watkins LLP

Defending Against The Hostile Bid: Lessons Learned From Allergan

Latham & Watkins LLP on

Readiness, a strong board and delivering good value are the best strategies to thwart activist investors say Latham & Watkins partners Cary Hyden, Paul Tosetti, Michele Johnson and Mark Gerstein in discussion with Allergan’s...more

Latham & Watkins LLP

The Resilient Rights Plan: Recent Poison Pill Developments and Trends

Latham & Watkins LLP on

Shareholder rights plans were developed more than 30 years ago to fend off opportunistic hostile offers and other abusive takeover transactions. Rights plans deter unauthorized stock accumulations by imposing substantial...more

Morrison & Foerster LLP

“Greenmail” Makes a Comeback

Morrison & Foerster LLP on

The much-maligned 1980s tactic of “greenmail” appears to have made a comeback in 2013. “Greenmail” has generally been defined as the practice of purchasing enough shares in a company to threaten a takeover, and then using...more

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