The court found that the board’s concern with respect to “creeping control” – the possibility that Third Point and other activist investors trading in the company’s stock might band together to obtain effective control of the company’s management, without paying any control premium to other Sotheby’s stockholders – constituted a legally cognizable and reasonable threat for the board to consider. The court emphasized that Sotheby’s board was independent and reviewed the circumstances related to activist investors with competent and qualified legal and financial advisors before adopting the pill. The court also found that the rights plan was proportionate to the threat presented. In particular it was not “coercive” or “preclusive.” The plan was not coercive in that it did not dictate a particular way that stockholders should vote in the pending proxy contest. The plan was not preclusive … [Read more...] about Delaware Law Update: Fee-Shifting Bylaw Provisions and the Use of a Poison Pill in Response to Activist Investor Activities
Stock prices and shares in drug companies spiked after President Donald Trump announced his plans to regulate prescription drug prices. Professors Charles M. Silver and David A. Hyman — and authors of "Overcharged: Why Americans Pay Too Much for Healthcare" — explain why Wall Street is in favor of Trump's plan. They argue the plan to make foreign prices higher won't lower prescription costs for Americans, and it will instead give pharmaceutical companies a larger profit margin to keep for themselves. After President Trump announced his plan for reining in prescription drug prices, shares in drug companies and pharmacy benefit managersspiked. Why? Based on Trump's campaign rhetoric — drug companies are"getting away with murder," Medicare should bargain down prices, etc. — Wall Street feared that big changes were afoot. But Trump's plan (titled "American Patients First") doesn't propose any big changes, so investors were relieved and … [Read more...] about Stock prices jumped when Trump announced his prescription drug plan — here’s what’s in it for Wall Street
“The trading in the new quarter is getting off to an ugly start as hostile trade talks and retaliation by trading partners weigh on the markets. These effects are sending shock waves across the global markets,” Peter Cardillo, chief market economist at First Standard Financial in New York, wrote in a note. … [Read more...] about Wilbur Ross: Plunging Stocks Won’t Change Trump Trade Policy
Marijuana activist Chris Lawson makes a speech on stage during a rally in support of legalizing marijuana on June 5, 2004, on Parliament Hill in Ottawa, Canada. After Canada’s parliament voted to legalize recreational weed on June 19, marijuana stocks in the country immediately surged. Donald Weber/Getty Images … [Read more...] about Is Canada’s Marijuana the New Bitcoin? Stocks Surge After Legalization
The latest evidence that President Donald Trump’s trade war is not the disaster “experts” predicted came via the Wall Street Journal on Tuesday: investors are moving their money into the United States as Trump’s aggressive policies destabilize competing markets. The Wall Street Journal tells us the American market is far tougher than the authoritarian states that were supposed to easily defeat us in tariff battles: … [Read more...] about Hayward: Trump Policy Shakes Up Foreign Markets, Brings Investors to the U.S.