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Subject: 
Re: Not looking good for eToys...
Newsgroups: 
lugnet.market.shopping
Date: 
Sun, 31 Dec 2000 00:39:36 GMT
Viewed: 
378 times
  
In lugnet.market.shopping, Jeff Shiner writes:


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 of 3 years following the date that that person became an interested
stockholder.
Now I am not a legal expert by a long shot but this section does apply to
eToys as stated in their form 8-K filing and seems to make it difficult for
a white knight or retailer to purchase or merge with them.

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



Message has 1 Reply:
  Re: Not looking good for eToys...
 
(...) 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)

Message is in Reply To:
  Re: Not looking good for eToys...
 
(...) 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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