Saturday, December 11, 2004

A bitter pill - for investors!

I had made a comment earlier about poison pills (a.k.a takeover defenses). Now a formal study has shown that companies that adopt such measures have a higher chance of defaulting on their debt! The correlation is not fully established just by one study, but this should not come as a surprise given the nature of companies (or more appropriately the characters that run them) that cling to such clauses!

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