How common is this for companies in the oil sector.
Thanks for the great service.
Rob
A poison pill shareholders' rights plan has never actually been utilized in a takeover. All it really does is buy a target company a bit extra time in negotiations. Shareholders would balk if a company chose massive dilution over a real takeover offer. Thus, they are pretty common but we consider them essentially not noteworthy. It is not a reflection on management in any way. Advisors probably suggested it. Brokers/Lawyers can earn fees from them. Still, control of the company is in the market. But a hostile takeover is next-to-impossible in the sector (you want to keep the engineers and executives and management). We would consider it essentially a non-event. It is a bit atypical though as it is typically implemented by a company whose shares have lagged, and TVE shares are up more than 200% in the past year.