YELP - Could These 3 Companies Force Groupon to Swallow Its Poison Pill?
Groupon (NASDAQ: GRPN) recently adopted a "poison pill" plan to fend off any hostile takeovers as its stock remains below $1. The plan -- which will last from April 10, 2020 to March 10, 2021 -- will kick in if a single person or group buys over 10% of Groupon's common shares, or if eligible passive investors accumulate over 20%.
If those conditions are met, Groupon's current shareholders will gain the right to buy additional shares at a steep discount to the market price, which would dilute a potential suitor's stake and make it more difficult to gain a majority stake. Groupon's decision was unusual, since companies usually adopt poison pill plans after hostile takeover bids have been initiated.
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