Frank Aquila Discusses Poison Pill Resurgence With MarketWatch

June 23, 2020

S&C's global head of M&A, Frank Aquila, spoke with MarketWatch about the return of poison pill shareholder-rights plans as the Covid-19 pandemic has unfolded. In March alone, MarketWatch reports, 57 public companies adopted poison pills in response to an activist threat or as a preventive measure, the highest number of new adoptions in such a short time period in more than 20 years.

“These poison pills were clearly aimed at preventing activist shareholders from acquiring significant share positions in the midst of market volatility,” Frank told MarketWatch. “While these poison pills might also inhibit opportunistic hostile bids, they will not prevent fully priced proposals from succeeding. As always, all will be a matter of negotiation.”

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