3D Systems adopted a poison-pill defense last week, despite the company not being subject to a hostile takeover. Ah, but maybe this is a signal being sent out that it wishes to be bought.
The plan is pretty complicated, one that I can't fully figure out. Perhaps that is the first line of defense, grasshopper: make the poison-pill terms so complex that potential suitors back away.
I think that the pill activates in this manner:
- A takeover attempt is defined as any entity owning more than 15% of TSDC (the trading symbol of 3D Systems).
- Special shares will be issued that are initially worth $55.
- But their value plummets to 1/10th of a penny within ten days of the takeover attempt, I think.
- Or maybe each $55 right suddenly becomes 1/100th of a share. That's in there, too.
You'll need to read the details to figure it out for yourself.