Not that this is something we need to be overly concerned about at the moment but what I am not entirely clear on is the actual logistics of this Poison Pill strategy. I understand the mechanism is meant to create a massive increase in the issued and outstanding shares thereby causing the suitor to pony up a significantly higher amount in terms of absolute dollars BUT for example:

The average price for the last 20 trading sessions is $10 per share and an offer or fip in event occurs at say $13 per share which in the eyes of the shareholders is unacceptable to the extent that the poison pill is triggered.

This would allow existing shareholders the right to acquire new shares on a 10:1 basis at 50% of the $10 or $5 per share. Again, for example, if one were to own 100,000 shares I see this as a potential and significant financial burden for many to fund that transaction. In theory, if one were to try and sell existing shares to acquire the new shares then logic would suggest that they forego the rights attached to those existing shares.

Don't mean to try and complicate this but is there someone out there who has actually lived thru a poison pill situation. I find the logisitics of this a little confusing to the extent that I question how effective it actually will be. I'm sure everyone has an opinion but if we have someone who can actually explain and articulate the logistics and effect of this it would be most appreciated.

Again, not sure that we need to be concerned about this at the moment but I do worry about it a little and I do worry that everyone believes in its effectiveness but I don't believe everyone is sure on the exact mechanics if it were triggered.