November 7, 2014
Did Bill Ackman Just Kill the Poison Pill?
Here’s an excerpt from this Fortune article:
“I think this ruling will put a substantial chill on activist-corporate team ups,” says John Coffee, a law professor at Columbia University. “The decision contained a sharp rebuke of Ackman’s tactics. My guess is Lipton is very happy they got that.”
What’s more, the judge making the ruling was in the 9th circuit court in California, which is not where key rulings in M&A cases get made, and therefore holds a little less sway when it comes to setting precedent. That’s usually the job of the 2nd Circuit Court of Appeals in New York for federal cases, or the Delaware court system, because that’s where many companies are incorporated, for state cases. Allergan has said it is going to appeal the ruling.