re: punters in puntland ?
Many people laugh at this reason put forward by me...but issuance of shares protects companies fromT/O's...it becomes a market cap issue.
Here is an artilce from "Law & Entrepreneurship News" - A blog on recent developments in law and entrepreneurship
November 08, 2004 News Corp. Protecting Against Takeover
News Corp. took steps on Monday in an effort to protect against a possible hostile takeover from the U.S. Cable Company Liberty Media.
Last week, Liberty Media began a transaction that could increase its voting share in News Corp from 9% to 17%. This move raised speculation that Liberty's chairman, John Malone, might be planning a takeover bid of News Corp.
In response to Liberty's actions last week, News Corp. announced on Monday that it would give its shareholders the right to buy one News Corp. share at half price for each share they own if any party buys a 15% interest in the company. This offer, known as a "poison pill" would make it much more expensive for Liberty to purchase the shares it would need to in order to be successful in a takeover effort.
A spokesman for News Corp. said it was too early to tell what Liberty's intentions were, but that the company was not treating them as friendly. The poison pill provision should help protect News Corp. if Liberty's intentions do turn out to be in conflict with News Corp.'s interest.
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