A flip-over is one of five types of poison pills in which current shareholders of a targeted firm will have the option to purchase discounted stock after the potential takeover. Introduced in late 1984 and adopted by many firms, the strategy gave a common stock dividend in the form of rights to acquire the firm's common stock or preferred stock under market value. Following a takeover, the rights would "flip over" and allow the current shareholder to purchase the unfriendly competitor's shares at a discount.[1] If this tool is exercised, the number of shares held by the unfriendly competitors will realize dilution and price devaluation.
Hitt, Michael A.; Harrison, Jeffrey S.; Ireland, Duane R. (2001), Mergers and Acquisitions: a Guide to Creating Value for Stakeholders, Oxford University Press US, ISBN978-0-19-511285-6
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flipover, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, march, 2021, lear. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Flipover news newspapers books scholar JSTOR March 2021 Learn how and when to remove this message A flip over is one of five types of poison pills in which current shareholders of a targeted firm will have the option to purchase discounted stock after the potential takeover Introduced in late 1984 and adopted by many firms the strategy gave a common stock dividend in the form of rights to acquire the firm s common stock or preferred stock under market value Following a takeover the rights would flip over and allow the current shareholder to purchase the unfriendly competitor s shares at a discount 1 If this tool is exercised the number of shares held by the unfriendly competitors will realize dilution and price devaluation See also editMergers and Acquisitions Takeover Industrial organizationFootnotes edit Hitt et al 2001 p 74 References editHitt Michael A Harrison Jeffrey S Ireland Duane R 2001 Mergers and Acquisitions a Guide to Creating Value for Stakeholders Oxford University Press US ISBN 978 0 19 511285 6 nbsp This economics related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Flipover amp oldid 1215157607, wikipedia, wiki, book, books, library,
