Shark Repellent

Shark Repellent it's a generic term related to strategy of takeover defense. Any company that intends to prepare itself against unsolicited bidders has several ways to avoid it. There are several measures that can be taken in order to respond a raider attack. Among shark repellent instruments there are: golden parachute, poison pills, greenmail, white knight, etc.

Anyway it shall make some effect against bidders. In US today, the streamline is the discussion of shark defense strategies as corporate governance politics, faced by shareholders interest. There's a lot of controversy over this issue, and in many cases it can only be solved within the Court. The question today is not only whether creating a bullet proof strategy or not, neither to keep defenses, the discussion is about shark repellent efficiency. Such mechanics originated in 80's decade with aggressive takeovers fueled by junk bonds. Those historic leveraged buyout operations originated protection concepts that somehow is part of most US stock public companies.

However, it's something not unanimous anymore. These provisions are accused of protecting in excess management, creating unreal prices, and keeping away even good bidders. In some companies, it can even ignore shareholders interest. The ones with real interest in company results at least. More than financial tricks, these bullet proof clauses are now being decided in Courts all over America. The main point is not only corporate governance, management, and holding control. Further its a discussion that really matters for shareholders that stood aside in the past.

From all the thesis available, standpoints and all, something is quite acceptable for everyone: the best raiders defense is a good stock performance. Translation of company behave within its own market area. If some corporation has good standings, and if existing some takeover defense culture, an attack will ever be quite a challenge. If unsolicited, avant investment bankers and prime corporate lawyers still make the job. Otherwise, it may be a natural solution for a crisis company without any perspective.

Furhter texts:

Shareholders Defense Shareholders participation to defend the corporation