SCENARIO. IF PL6 is an outstanding success and 4DSSP is low, 4DS can seek to delist from the ASX to avoid a low share priceattracting a takeover bid; however, the ASX has mechanisms to prevent this ifit's deemed to be primarily aimed at disadvantaging shareholders. Often, companiesneed to seek shareholder approval for delisting, usually requiring a specialresolution (75% of votes cast).
The 4DS Board of Directors can alsoconsider inserting a "poison pill" as adefensive tactic to deter hostile takeovers. It's essentially a strategy to make the target company less attractive toa potential acquirer, often by making it more expensive or difficult to acquire.
How itworks: The most common type is a "shareholder rightsplan" or "flip-in" plan. Thisallows existing shareholders (excluding the acquirer) to purchase additionalshares at a discounted price, diluting the acquirer's ownership stake andincreasing the cost of the takeover.
All the above would take time to implement, and a tradinghalt has a maximum of 2 days, and important information (such as PL6 success)needs to be announced to the public.
It is Important therefore that the 4DS take steps toensure any takeover bids align with the interest of its shareholders.
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