''Of course I can't tell you who they are,'' Mr. Lipton said in an interview, ''but several companies are looking at it.'' Explaining his protect preferred defense in a 27-page memorandum to clients, Mr. Lipton, the man who created the ''poison pill'' defense, said the idea was ''particularly appropriate'' for successful companies with sound business plans whose shares are undervalued and are under pressure to restructure. He argued that it ''may be the deciding factor in enabling a company to support a determination that the best interests of the company and its shareholders would be served by the company remaining independent.'' Mr. Lipton said that directors may feel that the company's stock price would indeed rise if it remains independent and pursues its business plan. ''Yet in today's takeover environment, the board of directors often may find that it simply has no time to pursue this value-maximizing alternative,'' he said. ''Quite simply, the board is likely to come under enormous pressure either to sell the company or to restructure now, incurring heavy debt which will force the company to abandon its long-term business plan.''
Full text: New York Times, Apr 17, 1989
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