In response to the takeover attempt, the company warned that it is going to issue a poison pill. Suppose that the company has decided to issue the pill with the following conditions: The pill is triggered at 15% ownership. Upon the triggering event, for each share they hold, shareholders can buy 10 additional shares at a price of ¥1000. Assume that Mr Murakami decides to increase his stake to 15% and that the stock price just before the pill is triggered is ¥2900. Calculate the effect of triggering the pill on Mr. Murakami’s ownership and value.
In response to the takeover attempt, the company warned that it is going to issue a poison pill. Suppose that the company has decided to issue the pill with the following conditions: The pill is triggered at 15% ownership. Upon the triggering event, for each share they hold, shareholders can buy 10 additional shares at a price of ¥1000. Assume that Mr Murakami decides to increase his stake to 15% and that the stock price just before the pill is triggered is ¥2900. Calculate the effect of triggering the pill on Mr. Murakami’s ownership and value.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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In response to the takeover attempt, the company warned that it is going to issue a poison pill. Suppose that the company has decided to issue the pill with the following conditions: The pill is triggered at 15% ownership. Upon the triggering event, for each share they hold, shareholders can buy 10 additional shares at a price of ¥1000. Assume that Mr Murakami decides to increase his stake to 15% and that the stock price just before the pill is triggered is ¥2900. Calculate the effect of triggering the pill on Mr. Murakami’s ownership and value.
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