The share rights plan and the working of the rights. Introduction: The corporate board may adopt a defensive strategy termed as shareholder rights plan in order to avoid being a target firm of the unfriendly takeover. These plans allow the existing shareholders the right to buy extra shares at a discount.

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Chapter 26.7, Problem 26.7BCQ

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To discuss: The share rights plan and the working of the rights.

Introduction:

The corporate board may adopt a defensive strategy termed as shareholder rights plan in order to avoid being a target firm of the unfriendly takeover. These plans allow the existing shareholders the right to buy extra shares at a discount.

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