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For a poison pill, how does the flip over work?
I have a question about poison pills. How does the flip over work?
The flip over provision is a type of poison pill that makes it difficult for an acquiring company to take over a target company without the approval of its board of directors. The flip over provision is triggered when the acquiring company acquires a certain percentage of the target company's shares, usually 20 percent or more, which then allows the target company's shareholders to purchase more shares at a discounted price. This, in turn, dilutes the value of the acquiring company's shares, making it more expensive for the acquiring company to complete the takeover.