Chesapeake Swallows Poison Pill to Block Takeover, Stock Up 45%

Last week as Chesapeake Energy’s stock plunged toward $0 in value, it seemed as if it was a matter of when (not if) the company would either declare bankruptcy or get bought out/taken over. The board of directors, sensing the takeover sharks were swirling, adopted a “shareholder rights plan” (aka poison pill) last Thursday to try and prevent another company or person or group from swooping in and buying up the company’s assets. And then a funny thing happened. On Friday Chessy’s stock price zoomed up 45%.

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