taking a large position, page-2

sbvb I also have been wondering why the pharmas wouldnt take a position in UNIS sanofi dont have to but others may prefer the security of knowing that if they can tie up 15% they can block a takeover that cuts them off from their supplier as soon as contracts run out

In the late eighties the Supreme Court upheld the constitutionality of state takeover laws, the most important being Delaware's merger moratorium law. This law prohibits a hostile acquirer from formally merging with the target for at least three years after buying a controlling interest. Widely regarded as a major deterrent, the Delaware law has an exception if the hostile bidder can acquire more than 85 percent of the target's stock, excluding shares held by inside managers and by certain kinds of employee stock-ownership plans. Since the law passed, Delaware-incorporated companies (which account for the majority of medium-size and large public companies in the United States) have engaged in various kinds of transactions to "lock up" more than 15 percent of stock in friendly hands,
http://www.econlib.org/library/Enc1/TakeoversandLeveragedBuyouts.html

THER HAVE BEEN NO SUCCESFULL HOSTILE TAKEOVERS OF DELAWARE COMPANIES SINCE THE LAW WAS PASSED