Delaware Supreme Court Approves Poison Pill Trigger Below 5 Percent

AGG Partner Henry R. Chalmers wrote an article titled “Delaware Supreme Court Approves Poison Pill Trigger Below 5 Percent” for the American Bar Association Litigation News magazine. The article describes the ruling in Versata Enterprises inc. versus Selectica Inc., a recent case in the Delaware Supreme Court in which a corporation blocked a hostile takeover bid by applying a poison pill with a trigger of less than 5 percent of the corporation’s stock. Mr. Chalmers explains how the ruling continues the Delaware Supreme Court’s deferential attitude toward aggressive shareholder rights plans when said plans can reasonably explain the low ownership threshold.

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