Demian, that is correct it would kill any take over hopes. That is not a problem though because most intelligent people know that this companys spectrum alone is worth 6 or 7 billion (many have no idea just how much spectrum it is and how it will make SIRIXM a media giant the likes of which not seen in a long time). Many of those are in it because of the long term fortune that can be made off it. I for one did not get in it a second time starting back about 3 years ago to make a short term quick buck. The poison pill can also be taken off at a time the company is worth the appropriate PPS or be given a time frame that it would expire. Also it would not need a hostile take over there are plenty of shareholders that have gotten in on the cheap (.4 to .9) and would vote for a buyout of 2 dollars. Now if you think 2 dollars is a huge premium then you confirm what I just said about, people that have gotten in on the cheap, and if you dont then you should be as worried as I am.
Look at Yahoo. When Microsoft was looking at buying Yahoo, they put in a "poison pill" that basically stated that if Microsoft bought them out and the employee didn't "feel comfortable" there anymore, they could leave and microsoft would have to pay them something like 3 years salary and keep their benefits in tact for a year. The employee needed no other excuse other than they didnt want to work there anymore. That "poison pill" was going to cost Microsoft an additonal 8 billion dollars or something to that affect, basically causing the deal to fall through.
john, I am right there with you. I have not started to average down since the merger. I am not completely comfortable doing so at this moment and finances are a bit tight as it is. If someone came in and bought out the company at $2, I would be in a world of hurt. But there are many that are accumulating a ton of shares right now that would be making a killing with a $2 buyout. That scares the crap out of me....
I also agree that putting in a poison pill is a good idea to keep us from getting sold out. It also keeps management honest as John said, if they wouldn't go for this then their motives need to be seriously questioned and we all have been misled.
Newman, you are correct my partner and I put into our corporate by laws that every vote needed 70 % approval to pass and we each held 50%. There were many other things we added.
cos1000, There are other reasons that the board may not like this and may not want it. But considering the atmosphere of distrust going on, the good I think, out ways the bad. Plus it would be the easy answer to Micheals H. problems. Just make it part of a vote on the RS and the adding 3.5 billion share delution.