CNET Adopts Poison Pill In Bid To Stymie Jana

Jan 14 2008 | 1:08pm ET

CNET is going nuclear in its battle with a pair of activist hedge funds. The Internet media group on Friday announced it has instituted a poison-pill provision “to deter coercive takeover tactics.”

Activist hedge fund Jana Partners, which owns a 10.6% voting stake and roughly 8% non-voting stake in the San Francisco-based company, last week launched a bid to take control of CNET’s board. Jana, which is backed by fellow hedge fund Sandell Asset Management, which owns a roughly 5% non-voting stake in CNET, has proffered a slate of board nominees, as well as a proposal to boost the size of CNET’s board, filling each of the new seats with Jana-nominated directors.

Jana managing partner Barry Rosenstein blasted the move as an “outdated and unpopular entrenchment mechanism” designed to thwart the hedge fund’s bid to improve CNET’s flagging stock price.

Under the poison pill, shareholders will be issued warrants entitling them to effectively buy two CNET shares for the price should any entity acquire 15% or more of the company’s common stock. That holder would not be entitled to buy new shares, effectively diluting its ownership stake.

RELATED STORIES

Jana Ups Ante In Battle For CNET
Jana, Sandell Launch Offensive Against CNET


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...