Antitakeover Devices: Poison Pills and Shark Repellents for Ship Owners

by Gary J. Wolfe, Partner, Seward & Kissel

Ship owning has traditionally been a family business. While fleets remained within the family, ship owners did not have to worry about losing control of their fleets to anyone but back stabbing children. As generations change, however, ship owners are increasingly accessing the capital markets. The last two years have seen a number of ship owners make high yield note (junk bond) offerings. Several ship owners planned to go public before the present freeze in the corporate equity and debt markets.

When any entrepreneur takes his company public, he has to start thinking about the consequences. One of those consequences is that some outsider may come along and try to take over his company. When ship owners only control, as opposed to own, fleets, they have to start planning for unwanted approaches.

This is only an excerpt of Antitakeover Devices: Poison Pills and Shark Repellents for Ship Owners

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