The Poison Pill, Long Hated by Investors, Gets New Love in Japan
- Shinsei wants to use defense against hostile takeover by SBI
- Proxy firms in support, but government against, report says
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One of the corporate world’s most controversial takeover defenses is winning some unexpected fans.
The poison pill -- which dilutes the ownership of hostile acquirers -- has long been criticized as a tool to keep bad management teams in place and deny existing shareholders the right to profit from buyouts. But a takeover battle in Japan is now spurring endorsements for the tactic by corporate governance experts and influential proxy advisers, and even making some activist investors consider giving it support.