February 16, 2006
More Pennsylvania Anti-takeover Legislation
Pennsylvania has passed new legislation to help a state bank, Sovereign, fend off the challenge of a hedge fund, Relational Investors, to an acquisition of by Sovereign of Independence Community Bank, financed by a sale of 19.9% of its stock to a Spanish bank. Article The legislation loosens the shareholder voting requirements of a large stock sale. When the Governor Rendell signed the bill the hedge fund dropped its suit to stop the stock sale and is considering a suit attacking the new legislation. This is more of the we must "hurt shareholders (by disenfranchising them) so as to help them" stuff that is a front for outright protectionist behavior by the Pennsylvania government.
February 16, 2006 | Permalink
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