Indiana Law Shields Lilly from Buyout

June 26, 2014

Indianapolis-based Eli Lilly is often mentioned as a potential hostile target, however a 1986 state law makes a takeover difficult to achieve.

The Indiana Control Shares Acquisition Statute does not completely forbid hostile acquisitions, but includes enough provisions to make potential acquisition extremely challenging. According to analyst Tim Anderson, the law is designed to protect the state's interest over those of shareholders.

While twenty-seven states have similar provisions, Lilly is the only large pharmaceutical company based in a state with such law.

Read the WSJ article