WASHINGTON-WorldCom Inc. shareholders adopted a provision at the company’s annual meeting submitted by the Communications Workers of America Pension Fund requiring shareholder approval for the adoption or retention of a “poison pill” provision.
CWA noted that a poison pill prevents any change in the control of a company without the approval of the board of directors, forcing any potential buyer to negotiate only with management and not allowing any offers to be made directly to shareholders.
The measure was especially important to CWA due to reports that WorldCom’s merger with Sprint may be blocked by antitrust officials in the United States and Europe.
