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Responding To Activist Investors, Companies Give Poison Pill More Punch

Publication Date: 
June 18, 2008
Source: 
The Wall Street Journal Law Blog
Author: 
Dan Slater

Professor Ronald Gilson is quoted in a Wall Street Journal Law Blog story about hedge funds:

According to Stanford law prof Ronald Gilson, “In the original pill answer, [companies] were afraid [activists] would vote enough shares that would allow them to influence control. In the present structure, they’re not concerned about how many votes that particular party has, they are concerned about the economic stake, because what the hedge fund is doing is not so much winning by holding votes, but they’re winning by influencing other shareholders.”