Wall Street Journal:Whiting Petroleum Adopts Poison Pill to Protect Potential Tax Breaks

One tax analyst said hard-hit industries might be trying to protect their net operating losses from unwelcome distressed investors looking for buying opportunities.

“It seems like one of the unforeseen consequences of the economic downturn that you’re now seeing is that it’s probably creating a target-rich environment for anyone who sees this as an acquisition,” Matthew Gardner, senior fellow at the Institute on Taxation and Economic Policy, said.

Mr. Gardner said the government’s stimulus bill might make it easier for companies to use net operating losses, increasing their value.

“So the stakes could become a lot higher for companies with a lot of net operating losses, and they’re concerned about preserving them,” he said. Read more

---