Supported by
A McDonald's 'Poison Pill'
The McDonald's Corporation said yesterday that its board of directors had adopted an anti-takeover plan designed to make it more expensive for a hostile bidder to acquire the giant fast-food chain.
Under the terms of the ''poison pill'' plan, if anyone acquired at least 20 percent of the company's shares, or made a bid for at least 30 percent, the owner of each share would have the right to buy one newly issued share of McDonald's stock for an exercise price of $200 a share.
If McDonald's is acquired in a merger or other combination, the owner of each McDonald's share would then have the right to buy stock in the acquiring company worth twice the market value of the $200 exercise price.
Last week, McDonald's was rumored on Wall Street to be a possible target of Philip Morris Inc., which itself has been rumored to be a possible bidder for the General Foods Corporation. But McDonald's said the provision was not adopted in response to any known offer, and was only designed to prevent ''abusive takeover tactics.''
Explore Our Business Coverage
Dive deeper into the people, issues and trends shaping the world of business.
A Billionaire Online Warrior: Bill Ackman, an obstinate hedge-funder who loves a public crusade, has used X to push himself into a new realm of celebrity.
Cancel Smartphones: The N.Y.U. professor Jonathan Haidt became a favorite in Silicon Valley for his work on what he called the “coddling” of young people. Now, he has an idea for fixing Gen Z.
Landline Pride: Traditional phones may seem like relics in the iPhone era, but a recent AT&T cellular service outage had some landline lovers extolling their virtues.
C.E.O. Dreams: Fresh business school graduates are raising “search funds” from willing investors to buy companies they can lead.
Nelson Peltz Wants Respect: The longtime corporate agitator feels misunderstood. Maybe his fight with Disney could change that.
The Palm Oil Supply Chain: An E.U. ban on imports linked to deforestation has been hailed as a “gold standard” in climate policy. Southeast Asian countries say it threatens livelihoods.
Advertisement