 | | Not looking good for eToys...
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Trade press is reporting that eToys has said they are going to run out of cash sometime in March or so barring another funding round or a white knight. And with Amazon allying with TRU on the toy front, there's not too much hope of a ecommerce white (...) (24 years ago, 30-Dec-00, to lugnet.market.shopping) !
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| | Re: Not looking good for eToys...
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(...) Actually I suspect that a conventional retailer or white knight could NOT buy eToys. Under Section 203 of the Delaware General Corporation Law they are forbidden to engage in a business combination with an interested stockholder for a period (...) (24 years ago, 30-Dec-00, to lugnet.market.shopping)
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| | Re: Not looking good for eToys...
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(...) That's a hostile takeover defense and Delaware law is friendly to corporations so I doubt this would apply to a friendly (white knight) takeover... Consult your M&A guy if you're thinking of buying them, don't take MY advice... ++Lar (24 years ago, 31-Dec-00, to lugnet.market.shopping)
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| | Re: Not looking good for eToys...
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(...) Here is an associated snipper from one of eToys legal filings: "IT MAY BE DIFFICULT FOR A THIRD PARTY TO ACQUIRE US EVEN IF DOING SO WOULD BE BENEFICIAL TO OUR SECURITYHOLDERS. Provisions of our amended and restated certificate of (...) (24 years ago, 31-Dec-00, to lugnet.market.shopping)
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| | Re: Not looking good for eToys...
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(...) you're quoting from is bluesky boilerplate that is in hundreds of 10Ks and 8Ks... means nothing. Of course a hostile takeover may be beneficial to security holders. Almost any takeover is beneficial to stockholders, especially when we're (...) (24 years ago, 31-Dec-00, to lugnet.market.shopping)
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