Poison pills involving a shareholder rights plans are not feasible in Australian takeover deals. The Takeover Panel policies, Corporations Act and ASX Listing Rules combine to prevent this sort of defence.
Non-share issue variants of the poison pill defence can be more useful in an Australian context including:
- Golden parachute – Provide key management with expensive compensation packages in the event of a takeover.
- Stagger board elections – Replace one board member per year on a rolling basis to Increase the likelihood that the acquirer will face an unfriendly board.
These strategies are not without their own problems.
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