Davidoff, writing as The Deal Professor for the New York Times DealBook blog, said [image-nocss] Casey's use of the "poison pill" to deflect Couche-Tard's bid was "a good example" of how to build a balance between preventing "shareholders from rapidly accumulating shares, obtaining special favors from the corporation or working together to do an end run around the pill provisions."
"Casey's used a poison pill to fend off Couche-Tard's bid until Casey's shareholders had time to definitively decide to reject the transaction at a board election," Davidoff wrote. "The poison pill ensured that shareholders were able to exercise their rights without coercion and with full information and time to consider. This is a common-sense approach."
Davidoff's blog post, titled "Re-examining the Poison Pill," also cited recent efforts to acquire J. C. Penney and Barnes & Noble as well-played strategies, while calling out the use of the poison pill by Air Products and Chemicals' hostile bid for Airgas as "questionable."
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The shareholder rights plan known as a "poison pill" is a defensive tactic used by a corporation's board of directors against a takeover.
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