Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



2 Reasons Why Nuance Communications Ate a Poison Pill

Last week, Nuance Communications (NASDAQ: NUAN  ) adopted a "poison pill," aimed at diluting the voting powers of any shareholder who acquires more than 20% of the company's shares outstanding.

Although the company claims the measure wasn't directed at any individual shareholder or company, the move is certainly a little suspicious, considering activist investor Carl Icahn recently built his position in Nuance to more than 16% of shares outstanding.

In the following video, Fool contributor Steve Heller gives two possible reasons for why Nuance "activated" this poison pill provision. Whatever the reason may be, it's become clear that the company is on the defensive.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

Read/Post Comments (5) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 28, 2013, at 1:05 AM, lowmaple wrote:

    I can't imagine how this could ever be good for shareholders considering the compensation civen to the board.

  • Report this Comment On August 28, 2013, at 1:07 AM, lowmaple wrote:

    sorry given

  • Report this Comment On August 29, 2013, at 10:05 AM, dviz wrote:

    You *do* understand that the poison pill in this case is a *provision* and not executed; right? It is a threat. No one ate a poison pill here; Nuance only said "don't do this or I will". Still not a good sign, but you should get it right if you're going to write for the Fool.

  • Report this Comment On August 29, 2013, at 2:26 PM, TMFTopDown wrote:


    Nuance *did* in fact swallow a poison pill by adopting a shareholder rights plan. It all depends if the conditions are met (a single investor owning more than 20% of common shares outstanding), whether the pill will be exercised.

    Thanks for your comment.

    Steve Heller

  • Report this Comment On September 05, 2013, at 11:08 AM, tweetybirdvicky wrote:

    Really well put. Thanks. I love the product and have been puzzled why they don't get their act together..... Hasn't there been a study that exec compensation is inverse to performance? Thanks for the video.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2612065, ~/Articles/ArticleHandler.aspx, 9/27/2016 11:47:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,178.45 83.62 0.46%
S&P 500 2,154.67 8.57 0.40%
NASD 5,289.05 31.56 0.60%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 11:31 AM
NUAN $14.53 Up +0.14 +0.97%
Nuance Communicati… CAPS Rating: ****