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Jana managing partner Barry Rosenstein blasted the move as an “outdated and unpopular entrenchment mechanism” designed to thwart the hedge fund’s bid to improve CNET’s flagging stock price.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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR