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Krispy Kreme Doughnuts, Inc. Message Board

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  • fisk007 fisk007 Jan 15, 2013 12:27 PM Flag

    Thursday

    Again...

    It seems as though this is a protection plan against a "hostile" takeover as stated in the AP article:

    "Krispy Kreme's so-called "poison pill" plan limits the way the company's previous operating losses and other credits could be applied to future taxes if there were a change of ownership."

    And the next line SHOULD read... "IF THE BOD determines the need for the "poison pill" to be put into action".

    ie - IF...IF they were to receive an offer to buy the company then they have a provision in place that would TRUMP a LOW BALL offer if it were determined by the BOD to be insufficient. This reduces the risk that an acquirer would gain control of the company at a low ball price.

    Smart move in light of the growth demonstrated over the last 3 years and the potential for the future.

    If they were to get takeover offers - they want to make sure they are in a position of strength to maximize share holder value in any possible deal.

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