Netflix adopts poison pill against takeover
Netflix adopted a poison pill defence against a hostile takeover, days after activist investor Carl Icahn disclosed a stake in the video rental company.
The move is aimed at preventing an outsider who lacks Netflix board approval from accumulating a stake of 10 per cent or more, the company said in a statement.
The board approved the provision on Friday. It remains in effect for three years.
The poison pill is a common strategy used by companies in response to Icahn. On Wednesday last, Icahn disclosed that he had amassed control of 10 per cent of Netflix shares, but most of his purchases were in the form of call options.
The billionaire, who is known for shaking up management, said he saw Netflix as an attractive acquisition target for a number of companies. – (Reuters)