Davis - where are you reading that? All I've read is that buying 15% of TiVo would immediately result in TiVo issuing a $60 per share dividend to all of their shareholders. What you're proposing isn't in anything I'm reading, and frankly, I don't see how an arrangement could be legally binding on anyone.
Issuing a $60 a share dividend forces up the share price and leaves TiVo oweing $7.5B to its shareholders, making a takeover phenomenally expensive. That's what makes it a poison pill.
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squiggleslash @ Jun 10th 2009 8:02PM
Davis - where are you reading that? All I've read is that buying 15% of TiVo would immediately result in TiVo issuing a $60 per share dividend to all of their shareholders. What you're proposing isn't in anything I'm reading, and frankly, I don't see how an arrangement could be legally binding on anyone.
Issuing a $60 a share dividend forces up the share price and leaves TiVo oweing $7.5B to its shareholders, making a takeover phenomenally expensive. That's what makes it a poison pill.