How effective is the poison pill in corporate governance? Columbia undergraduate student Tanvi Bhaskar explores problems associated with the poison pill through her research at the Millstein Center for Global Markets and Corporate Ownership.
The shareholder’s rights plan, or the “poison pill”, is a type of defensive strategy used by companies against takeovers. It is founded in the idea that shareholders can access discounted shares in a company if one shareholder buys at, or above, a certain set percentage of the shares of a company. B…