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Anti-Takeover Provisions at Strategy Incorporated: Implications for Stockholders

Anti-Takeover Provisions at Strategy Incorporated: Implications for Stockholders

Strategy Incorporated (MSTR) has disclosed a new risk, in the Share Price & Shareholder Rights category.

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Strategy Incorporated faces potential risks due to certain provisions in its charter, by-laws, and Delaware law that may have anti-takeover effects. These provisions could complicate or prevent a change in control of the company, even if such a change could benefit stockholders. The board of directors has significant power, including the ability to fill director vacancies and issue shares of undesignated preferred stock without stockholder approval. Additionally, Delaware law imposes restrictions on business combinations with significant stockholders, which could be used by the board to delay or prevent acquisitions.

Overall, Wall Street has a Strong Buy consensus rating on MSTR stock based on 11 Buys.

To learn more about Strategy Incorporated’s risk factors, click here.

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