The iconic photography company, Eastman Kodak, that began it all is fighting and building defenses against takeover. The U.S. company has lost more than 50% of its stock price this year. Where it could not compete in the market as its business model has been cannibalized by digital cameras and smartphones, it is building new financial model fences. Aug 1, it adopted a poison pill which triggers when someone or any group acquires up 4.9% stake in the company.
Whenever such happens, shareholders, as Aug 1, will be given the opportunity to purchase one newly issued preferred share for each regular share they own. Through this technique, any person that wants to takeover will indeed have to truly spend more money.
It is important to emphasis that Kodak is figuring out how to compete through Wall Street strategies and not engineering which has favored it for decades. Tekedia will be here to see how this company does in coming months even as the share price continues to drop.