Is Tyhee's Shareholder's Right Plan a Poison Pill for Would-be Take Over?

Jim Puplava, in his September 25, 2010 FSN discussion with John Embry, spoke about a company that resembles Tyhee. He mentioned a "poison pill". I've heard a similar sentiment from an avowed large Tyhee shareholder. So, it's perhaps now helpful to revisit part of my June, Mr. Viti post, and let you see what Dave Webb had to say about this"

"Dr. Webb may have destroyed the stock by putting in a “poison pill” which makes the company less attractive to takeovers."

Dave Webb's response, which I think I had paraphrased,

"The Shareholder's Right Plan should be read by investors and who can then decide whether to vote for it. This was done. The Plan says anyone who wishes to take over Tyhee may, however: 1) The takeover bid has to treat all shareholders equally (i.e., you can't pay one price for control, and then pay a different (lower) price to others. 2) The offer has to be open for 60 days (not 30 days), and 3) the bid has to be for at least 50% of the shares, and 4) You can't do a creeping takeover (i.e. buy 2 to 3% a week for several months.

The shareholders who voted and approved of this did not believe it placed an unfair onus on an acquisition. In fact, most shareholders’s considered this a good idea, including all of our major shareholders (except one)."

Hope this helps.

Cheers,

Baires