Oshkosh initially adopted the plan in question, commonly referred to as a "poison pill," in response to Icahn's Oct. 11 bid to purchase Oshkosh for $32.50 per share. At the time, Oshkosh called that offer "opportunistic" and responded by announcing a plan that would go into effect upon any would-be purchaser acquiring 10% or more of its shares. (Icahn already owned 10%). In essence, the plan made it more difficult, and expensive, for Icahn to purchase a controlling stake in the company absent cooperation from management.
Icahn dropped his bid to acquire the company last month and, with no other bidders having emerged in the meantime, Oshkosh is now eliminating the poison pill. Shares of the company had fallen 0.3% today as of this writing, and currently trade at $32.49 -- a penny below Icahn's offer.
The article Oshkosh Eliminates "Poison Pill" originally appeared on Fool.com.Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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