Impact of Poison Pill Strategy on Shareholder Rights

In the context of recent corporate governance reforms, shareholders' rights have garnered increasing attention within the corporate framework. One significant aspect of shareholder rights is their ability to influence management decisions and corporate strategies. In this regard, consider the following scenario:

A publicly traded company has decided to implement a 'poison pill' strategy to deter potential hostile takeovers. This strategy allows shareholders to purchase additional shares at a discount in the event of a takeover bid, thereby diluting the value of existing shares.

Which of the following best describes how this action affects shareholders' rights?