Financial Times FT.com

South Korea considers use of ‘poison pills’

By Song Jung-a in Seoul

Published: November 9 2009 06:14 | Last updated: November 9 2009 17:52

South Korea plans to allow the use of “poison pills” to help local companies fend off hostile takeovers as the influence of foreign investors grows in Asia’s fifth-largest economy.

The justice ministry held a public hearing on Monday to discuss the introduction of a “poison pill” clause in commercial laws, which would give shareholders the right to buy new shares quickly at a discount when they face an unsolicited takeover bid.

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