defensive techniques used by companies to avoid takeover. Mergers and acquisition presentation MMS sem 3 Finance subject Netflix and Icahn Enterprise

2. Group Members
• Kaushik S MMS A 59
• Abhishek jaiswal MMS B 17
• Avijit Sarkar MMS B 39
• Tanima Sen MMS B 41
• Shilpa Tripathi MMS B 51

3. Defence Technique
Takeover defenses are intended to either prevent
the transaction from taking place or to increase
the offer.
– Pre-offer mechanisms are triggered by changes in
control, generally making the target less attractive.
– Post-offer mechanisms tend to address ownership of
shares and reduce the hostile acquirer’s power gained
from its ownership interest in the target.

4. Types of Defence
Techniques in Mergers
and Acquisition
Pre-Bid
Post-Bid
• Poison pills
• Greenmail
• Back-end Plans
• White Knights
• Golden Parachutes
• Sale of Assets
• Silver Parachutes
• Tin Parachutes

6. About Netflix
• Founded in year 1997, California,
United states
• A Film rental company
• Netflix is the world’s leading
Internet television network
with over 50 million members
in nearly 50 countries
• As of September 2014, Netflix has
subscribers in over 40 countries

7. About Icahn Enterprises
• Founded in the year 1987, Headquarter in New
York
• A Master limited partnership Company
• A diversified holding company engaged in nine
primary business segments
• Investment, Automotive, Energy, Gaming,
Railcar, Food Packaging, Metals, Real Estate
and Home Fashion.

8. Defence Technique used By
Netflix
• Netflix takes poison pill to ward
off Icahn Takeover
• Icahn already acquired 9.98%
stake in Netflix
• Netflix adopted a stockholder
rights plan to block a hostile
takeover by the activist investor
• The plan "poison pill," would kick
in if an individual or group tried
to buy a sizable chunk of the
company without approval from
Netflix's board

9. • Netflix further announced that its BoD adopted
a stockholder rights plan and declared a
dividend distribution of one right ("Right") for
each outstanding share of Netflix common stock
• The Rights Plan is intended to protect Netflix
and its stockholders from efforts to obtain
control of Netflix that the Board of Directors
determines are not in the best interests of
Netflix