Ahold Delhaize Appeases Shareholders With 'Poison Pill' Compromise
On Wednesday, Ahold Delhaize managed to appease investors opposed to the extension of its takeover defence mechanism by giving shareholders more rights if the so-called 'poison pill' is ever activated.
The Dutch-Belgian supermarket company decided to keep its defence mechanism, set to expire in December, in place for at least 15 years, even though a group of shareholders led by activist hedge fund CIAM had demanded a vote on the matter.
Ahold Delhaize insisted that it did not need shareholders' consent to extend the mechanism, which enables an independent body to issue shares to thwart a takeover, but it did alter the arrangement to take into account shareholders' wishes.
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