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Pep Boys - Manny, Moe & Jack Message Board

  • hopefulmike hopefulmike Feb 4, 1998 5:22 PM Flag

    shareholder rights?

    I just received a letter today from the CEO of PBY describing the new Shareholder Rights Plan. This plan uses a stock dilution scheme to discourage potential takovers.
    Am I the only one who sees through this deception? How am I better off if I am deprived of the opportunity to accept a buyout above the current stock price?
    This is really a Management Rights Plan to protect the current entrenched management. Takeovers properly occur when someone realizes (as current management apparently does) that the company would be worth a lot more under different control. Management apparently is also not confident of finding new employment at the same lavish compensation.
    I wish the sheep out there who vote for these plans or don't submit their proxies (same thing) would finally wise up! I make it a practice to vote against boards that implement these plans. Of course, I could have avoided buying the stock, but the stock price went so low that there is significant potential even with the current mismanagement. I hope I didn't underestimate the current CEO's capacity for self serving actions.