Publications

March 29, 2010

Matthew Abbott, Steve Williams and Frances Mi Publish Article in Directorship Magazine

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Corporate partners Matthew Abbott and Steve Williams and counsel Frances Mi authored the article "Delaware Upholds a 4.99% Poison Pill: Selectica v. Versata and Its Implications for Boards," which appears in the April/May issue of Directorship magazine. The article discusses the renewed focus on antitakeover protections as target boards confront opportunistic buyers. In Selectica v. Versata, the Delaware Chancery Court upheld Selectica's use of a poison pill that carries a low trigger threshold of 4.99%, designed to protect the company's tax net operating loss carryforwards (NOLs). Beyond upholding an increasingly popular adaptation of the traditional poison pill, the decision serves as a useful reminder of the issues that every director and advisor should consider in crafting corporate defenses.