Quote:
Originally posted by soup sandwich
Can anyone explain to me why companies often will acquire 19.9% of another business's shares? What happens when the 20% threshhold is crossed?
Please type very slowly when you answer as I recieved only a C+ in Business Law.
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20% ownership is a typical trigger for poison pill provisions (aka shareholder rights plans). If triggered, the other shareholders (ie, not the 20% acquirer) would have the right to purchase additional shares, thus diluting the acquirer's interest.
