Icahn’s target-Netflix adopts “poison pill”
06 Nov 2012
Netflix Inc yesterday said that it had adopted a shareholder rights plan, or ''poison pill'', just days after activist billionaire investor Carl Icahn disclosed that he had acquired a stake in the US internet streaming media company.
California-based Netflix said that its board approved a shareholder rights plan, which would flood the market with shares if Icahn increases his stake above than the 10 per cent he currently holds.
The company said the move was "intended to protect Netflix and its stockholders from efforts to obtain control of Netflix that the board of directors determines are not in the best interests of Netflix and its stockholders."
The so called ''poison pill'' is now routinely adopted by companies that have recently become a target by the activist investor, who is known for investing in companies and aggressively calling for change.
Last month, Oshkosh Corp also adopted the poison pill after Icahn, who holds about 9.5 per cent in the specialty truck maker, offered to buy the company for about $3 billion.
Netflix shareholders right plan would make an individual or group trying to buy a sizable chunk of the company without the approval from Netflix's board extremely expensive by flooding the market with new shares .
.webp)
