Spirit Airlines Adopts Poison Pill Provision After Coronavirus Stock Selloff
Spirit Airlines (NYSE: SAVE), which has lost 76% of its market cap over the past year, said on Monday that it has adopted a so-called poison pill to block any unsolicited attempts to take it over.
The shareholder rights plan would become exercisable if a person or a group acquires an ownership stake of 10% or more of Spirit in transactions not approved by the board. Such poison pill plans are designed to flood the market with additional shares in the event of a hostile takeover attempt, diluting the would-be acquirer's stake and making it more expensive to accomplish a takeover.
Image source: Spirit Airlines.
Source Fool.com
