Canadian Poison Pills: Are They Effective?
Two Canadian companies have recently adopted poison pill plans similar to those adopted by some US firms. Most of those US plans have been adopted without shareholder approval. Canadian directors have been told that poison pill plans discourage hostile takeovers or force bidders to negotiate with the target’s board of directors. Management and directors of Canadian publicly held companies that are vulnerable to hostile takeovers are considering poison pill plans or equivalent steps to ensure fairness to shareholders. There are legal and regulatory considerations, such as the “proper purpose” doctrine, which has been accorded deference by courts and academics for years. The oppression remedy, which is not included in US corporate statutes but is included in those of Canada and other jurisdictions, poses another difficulty for poison pill plans. This statutory remedy provides that a court can offer relief where the directors have exercised their powers in a manner that is oppressive or unfairly prejudicial to any security holder.
www forex se
Coleman, Gordon
Full text: [International Financial Law Review] Jun 1989
forex signals
Corporate Earnings Cast a Shadow on the Street
The next few quarters may be difficult for Wall Street. An aging expansion does not support healthy earnings growth in the market because many of the early signs of an economic turndown, such as a weakening consumer demand, sluggish productivity growth, and rising wage pressures, are the same items that cut into profits. Aftertax corporate profits fell at a 25.8% annual rate in the 2nd quarter to an annual rate of $161.1 billion, a switch from the robust 22% increase in the first quarter of 1989. Net interest expense for nonfinancial corporations has skyrocketed during the latter part of this expansion, with interest payments doubling in just 3 years, and nonfinancial corporate debt has increased 50% since 1986. In addition, profit margins are being squeezed by accelerating labor costs. To protect their bottom lines, companies will try to pass their higher costs on to consumers.
www forex.se
Madigan, Kathleen
Full text: [Business Week] Oct 30, 1989
forex signals
Markets Take Worst Hit Yet on Gulf Uncertainty; Oil Prices Soar $3 a Barrel; Dow, Nikkei Fall
The rout reflected investors’ sour mood when they returned to work after a weekend during which Iraq broke its promise to begin withdrawing troops on Sunday from Kuwait. The markets also were nervous over the prospect that the United States and other Western nations might confront Iraq militarily, and over the impact on oil prices of a planned, widespread boycott of Iraqi and Kuwaiti crude. Although [Byron R. Wien] and other analysts said the market is nervous over the prospect of U.S. military activity against Iraq, they said that they believed that a successful military operation against Iraqi dictator Saddam Hussein would bolster stock prices. The dollar, which had risen last week as investors sought a “safe haven” for their funds, turned mixed owing to worries that the U.S. economy may be on the verge of a recession. The U.S. currency dropped to 1.5788 West German marks this afternoon, from 1.5935 on Friday.
www.forex.se
Robert J. McCartney
Full text: [The Washington Post (pre-1997 Fulltext)] Aug 7, 1990
forex signals
Four Lead Banks Pledge $1.4 Billion to UAL Plan
NEW YORK, Oct. 2 — Employees at United Airlines have made progress in lining up $2 billion of financing for their proposed buyout of the carrier and have given themselves an extra six days to obtain the necessary loans to complete the long-delayed deal, sources said today. The reported headway is the most positive news in months about the union-led deal, which has dragged on for three years without success. The news helped push up the stock price of UAL Corp., United’s parent, nearly $15 per share in two days. It closed today at $112. (excerpt)
www forex se
McCartney, Robert J.
Hamilton, Martha M.
Full text: [The Washington Post] Oct 03, 1990
forex signals