• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

  • Opinion
  • Health IT
    • Behavioral Health
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Patient Engagement
    • Population Health Management
    • Revenue Cycle Management
    • Social Determinants of Health
  • Digital Health
    • AI
    • Blockchain
    • Precision Medicine
    • Telehealth
    • Wearables
  • Life Sciences
  • Investments
  • M&A
  • Value-based Care
    • Accountable Care (ACOs)
    • Medicare Advantage

Allscripts Swallows Poison Pill to Avoid Hostile Takeover

by Fred Pennic 05/07/2012 Leave a Comment

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

poison-pill Allscripts Healthcare Solutions, Inc. announced on Monday adopted a shareholder rights plan, also commonly called a “poison pill” to protect itself from any potential hostile takeover approaches in the wake of firing the chairman and departure of three board members that sent its stock price tumbling 34% since April 26. The New York Hedge Fund that holds 4.9% of the company along with other large shareholders demanded the resignation of CEO Glen Tullman citing  weak forecast reporting a 54% decline in first quarter profits and issues with the execution of integrating Eclipsys Corp, the software vendor that it bought two years ago for $1.3 billion in stock.

Under the shareholder rights plan, stockholders will receive rights to purchase shares of a new series of preferred stock in certain circumstances. The rights will be exercisable if a person or group, without board approval, acquires 10% or more of Allscripts’ common stock. The plan exempts any person or group already owning 10% or more of Allscripts’ shares, but it may be exercisable if they acquire any additional shares. The plan will expire May 6, 2013.

In a Monday statement, newly named Chairman Dennis Chookaszian said the board believes that the current share price does not reflect the company’s long-term potential. Chookaszian said the anti-takeover measure was “a temporary measure that is consistent with the board’s fiduciary duties.”

 

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Tagged With: Allscripts

Tap Native

Get in-depth healthcare technology analysis and commentary delivered straight to your email weekly

Reader Interactions

Primary Sidebar

Subscribe to HIT Consultant

Latest insightful articles delivered straight to your inbox weekly.

Submit a Tip or Pitch

Featured Interview

Reach7 Diabetes Studios Founder Chun Yong on Reimagining Chronic Care with a Concierge Medical Model

Most-Read

KLAS Report: Oracle Health Faces Customer Losses and Declining Satisfaction

KLAS Report: Oracle Health Faces Customer Losses and Declining Satisfaction

Tempus AI Acquires Digital Pathology Leader Paige for $81.25M

M&A:Tempus AI Acquires Digital Pathology Leader Paige for $81.25M

Mira Launches Ultra4™, the First At-Home Hormone Monitor with Lab-Quality Insights

Femtech: Mira Launches Ultra4™, the First At-Home Hormone Monitor with Lab-Quality Insights

Preparing for the ‘Big Beautiful Bill’: How Digitization Can Streamline Medicaid Eligibility & Social Care Delivery

Preparing for the ‘Big Beautiful Bill’: How Digitization Can Streamline Medicaid Eligibility & Social Care Delivery

How Healthcare CIOs Can Solve the Unstructured Data Crisis and Reduce Storage Costs

How Healthcare CIOs Can Solve the Unstructured Data Crisis and Reduce Storage Costs

Healthcare C-Suite Acknowledges AI Potential but Lacks Trust

Sage Growth Partners Report: Healthcare C-Suite Acknowledges AI Potential but Lacks Trust

EVERSANA and Waltz Health Merge to Redefine Pharmaceutical Commercialization

EVERSANA and Waltz Health Merge to Redefine Pharmaceutical Commercialization

Advancing Diabetes Care: Combating Burnout and Harnessing Technology

Advancing Diabetes Care: Combating Burnout and Harnessing Technology

White House Event Unveils CMS Health Tech Ecosystem Initiative

White House Event Unveils CMS Health Tech Ecosystem Initiative

Meaningful Use Penalties_Meaningful Use_Partial Code Free_Senators Urge CMS to Establish Clear Metrics for ICD-10 Testing

CMS Finalizes TEAM Model: A New Era of Value-Based Surgical Care

Secondary Sidebar

Footer

Company

  • About Us
  • Advertise with Us
  • Reprints and Permissions
  • Submit An Op-Ed
  • Contact
  • Subscribe

Editorial Coverage

  • Opinion
  • Health IT
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Population Health Management
    • Revenue Cycle Management
  • Digital Health
    • Artificial Intelligence
    • Blockchain Tech
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • Value-Based Care
    • Accountable Care
    • Medicare Advantage

Connect

Subscribe to HIT Consultant Media

Latest insightful articles delivered straight to your inbox weekly

Copyright © 2025. HIT Consultant Media. All Rights Reserved. Privacy Policy |