Already 40 companies have adopted their first-ever poison pills this year, confirming a trend affecting U.S. companies across the board. It is likely that the number of companies adopting pills will continue to grow. An unprecedented number of poison pills this year will likely out number shareowner resolutions against them, according to a Global Proxy Watch report.
Unsolicited and hostile takeover bids have jumped to 52 through September, versus 42 during the same period last year. It has also been a record year for proxy fights as they are higher in 2008 than any year since 2001 when SharkRepellent began tracking them.
The decline in stock valuations could result in more company takeovers, spawning additional pill proposals. However hedge funds, known for pressing M&A deals, are crippled and according to GPW “may be out of action.”