Icahn Sours at Taste of Netflix's 'Poison Pill'

Slams stock move as 'poor corporate governance'

By Matt Cantor,  Newser Staff

Posted Nov 6, 2012 7:33 AM CST

(Newser) – Billionaire investor Carl Icahn isn't happy with Netflix's plan to avoid a takeover, and he told the SEC as much yesterday. In a filed statement, he called the company's share-diluting "poison pill" decision "an example of poor corporate governance," the Los Angeles Times reports. It's "particularly troubling" thanks to the poison pill's "low and discriminatory" trigger: If any shareholder moves to acquire more than 10% of the company, all other investors will be granted access to more shares. "As one of the company's largest shareholders, we are concerned about the poor corporate governance at Netflix that these and other actions reflect," Icahn said in the filing.

Netflix CEO Reed Hastings poses for a photo at Netflix headquarters in Los Gatos, Calif.   (AP Photo/Paul Sakuma)
FILE - In this Oct. 11, 2007 file photo, private equity investor Carl Icahn speaks at the World Business Forum in New York. On Monday, Nov. 5, 2012, Netflix announced it is moving to protect itself against...   (AP Photo/Mark Lennihan, file)
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