Despite recent reports, US companies will not be rushing to
change their shareholder rights plans in the wake of the CSX
case. The poison pills would punish the wrong parties and could
In CSX v TCI Management, a district court found
that investors building stakes in companies held beneficial
ownership of the underlying shares in contracts for difference
(CFD), or total return swap, deals.
If this decision stands, then holders will have to disclose
their position if, combined with any equity stake they may
hold, the CFDs reach defined levels.