Microsoft, Yahoo and poison pills
The latest ploy in the Microsoft/Yahoo takeover battle has now been revealed. Yahoo has put a poison pill takeover defence in place, in the form of expensive staff ‘termination payment in the event of takeover” provisions.
I commented on Rod Drury’s blog that if I was a Yahoo shareholder, I’d be very angry. Existing staff contracts will already cover termination, and set the ground rules when people accepted their jobs at Yahoo. So what’s this about? Protecting the incumbent management. MS (or any other bidder) will discount the cost of the poison pill in any final price, and Yahoo shareholders will pay the bill.
If you invite in external shareholders, you have to treat them right, and this is wrong. Yang and Co should get the sack for this stunt.
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February 21st, 2008 at 8:31 pm
jim, i’m sure you are aware stunts like this are common practice in american listed corporates during unsolicited takeovers, but that said i agree with you