Hertz Enacts Poison Pill Provision For One Year

Mani

Published onDecember 31, 2013

Updated on May 13, 2021

Hertz Global Holdings, Inc. (NYSE:HTZ) adopted a one-year shareholder rights plan following unusual and substantial activity in its shares.

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The rental car company’s move is to prevent investors from gaining control of the firm.

Shareholder-rights plan

A shareholder-rights plan, also known as a poison pill, is designed to dilute the value of the stock by flooding the market with additional shares, making it expensive for an investor to acquire a controlling stake.

The rental car company’s shareholder-rights plan has a 10% trigger, and is being used to reduce the likelihood that any individual or group...

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Mani

Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports

Hertz Enacts Poison Pill Provision For One Year

Shareholder-rights plan

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