Case Study: Selectica, Inc. v. Versata Enterprises

This case study follows the Delaware court's analysis of a hostile take over battle over a company with low book valuation and net losses but which had carryover net operating losses that were valuable as tax deductions. To avoid a takeover by a company looking to capitalize on this tax write-off, the company engaged a poison pill plan. The court had to determine whether the plan was reasonable under the circumstances and had engaged in a proper process to best protect its shareholders.

The case can be found here:

https://law.justia.com/cases/delaware/court-of-chancery/2010/134490-1.html