re: punters in puntland ? The poison pill referred to ... Poison...

re: punters in puntland ?

The poison pill referred to ...
Poison Pill
A strategy used by corporations to discourage a hostile takeover by another company. The target company attempts to make its stock less attractive to the acquirer. There are two types of poison pills: 1. A "flip-in" allows existing shareholders (except the acquirer) to buy more shares at a discount.
1. By purchasing more shares cheaply (flip-in), investors get instant profits and, more importantly, they dilute the shares held by the competitors. As a result, the competitor's takeover attempt is made more difficult and expensive.

This in no way applies to RRS....do they have preference shares, voting and non voting stock?..... with them any dilution by rights issue will dilute the shareholdings without affecting the Market Cap. The market cap of a company is found by multiplying the number of shares by the percieved value of the company i.e its share price. Unless RRS is seen as under valued and investors push up its share price, the market cap will remain the same. It doesn't matter how many times you cut up a pie, its size wont change unless you add filling to it.