January 16, 2013
The New NOL Standard
Is it me or since Versata v Selectica have we been seeing an unusual rgowth in the use of NOL pills? I mean, there are an awful lot of firms out there all of a sudden looking to protect net operating losses from the liklihood of an inadvertant "ownership change". Or maybe, it's a shift of what is now the new "market" from a 10-15% trigger down to a 4.99% trigger. Oh, Krispy Kreme adopted a NOL pill yesterday. It's not seeking to prevent a hostile takeover, just an inadvertant change of ownership.
January 16, 2013 | Permalink
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10% is the new 15% for activist pills. I think DE courts will closely scrutinize the use of a NOL pill in response to activism and whether crossing the threshold will have adverse economic effects.
Posted by: AnonCorpLawyer | Jan 16, 2013 6:23:18 AM