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Drug developer Zymeworks adopts ‘poison pill’ to keep All Blue at bay

HBS Reporting

Drug developer Zymeworks adopts ‘poison pill’ to keep All Blue at bay

Drug developer Zymeworks adopts ‘poison pill’ to keep All Blue at bay

June 10 (Reuters) – Cancer therapy developer Zymeworks Inc (ZYME.N) said on Friday it had adopted a “poison pill” to thwart a hostile takeover from All Blue Capital, a month after rejecting the investment firm’s $773 million bid on valuation grounds.Vancouver, Canada-based Zymeworks said the shareholder rights plan would stop investors from amassing more than 10% of its share, or 20% in the case of some passive investors.Poison pills, such as the one recently adopted by Twitter Inc (TWTR.N) before it accepted Elon Musk’s buyout bid, make a takeover more difficult by allowing existing shareholders to buy shares at a discount, diluting a suitor’s ownership stake.In a filing late last month, All Blue Falcons raised its stake in Zymeworks to 6.9%.The rights plan will expire in June next year.

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