Like Chesapeake Energy last week and Williams in late March, the Gulfport Energy board has decided to swallow a poison pill. Some companies call poison pills a “stockholder rights agreement” or a “shareholder rights plan.” In Gulfport’s case, they call it a “tax benefits preservation plan.” It doesn’t matter what you call it, it’s all the same thing. It’s a provision that defends the company against a takeover.
Like Chesapeake Energy last week and Williams in late March, the Gulfport Energy board has decided to swallow a poison pill. Some companies call poison pills a “stockholder rights agreement” or a “shareholder rights plan.” In Gulfport’s case, they call it a “tax benefits preservation plan.” It doesn’t matter what you call it, it’s all the same thing. It’s a provision that defends the company against a takeover.