Comments on: Pension Plans Sues To Block Lilly-ImClone Deal http://www.pharmalot.com/2008/10/pension-plans-sues-to-block-lilly-imclone-deal/ News, Comment and Conversation Fri, 10 Feb 2012 20:45:36 +0000 http://wordpress.org/?v=2.6.2 By: Chris MacDonald http://www.pharmalot.com/2008/10/pension-plans-sues-to-block-lilly-imclone-deal/#comment-379437 Chris MacDonald Mon, 27 Oct 2008 21:28:25 +0000 http://www.pharmalot.com/?p=16986#comment-379437 This story is a nice counter-example to the "standard" assumption that firms (and boards) are obsessed with shareholder profit. In this case, the accusation, at least, is that the board isn't don't <i>enough</i> to promote the interests of shareholders. It also illustrates that "shareholders" are not homogenous. Icahn (who chairs the Board) owns a bunch of ImClone shares, but his interests don't necessarily coincide entirely with those of other shareholders. This story is a nice counter-example to the “standard” assumption that firms (and boards) are obsessed with shareholder profit. In this case, the accusation, at least, is that the board isn’t don’t enough to promote the interests of shareholders.

It also illustrates that “shareholders” are not homogenous. Icahn (who chairs the Board) owns a bunch of ImClone shares, but his interests don’t necessarily coincide entirely with those of other shareholders.

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