Comment Re:EA (Score 2) 86
Public companies can also have a mechanism to halt a hostile takeover, it's called a poison pill. Generally it involves some kind of massive payoff to the current staff, but it can also be the automatic issuance of new stock which dilutes the holdings of the company attempting to do the acquisition. The first known use of the latter technique that I'm aware of was the Westinghouse corporation which issued massive amounts of stock when JP Morgan tried to take them over, ultimately providing them with enough money to complete the Niagara power station project.