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Although I'm generally very positive about EBIX's outlook, I'm not very positive about this arrangement. It looks to me to essentially operate as a poison pill to discourage a takeover. If I'm calculating this correctly, a company that decides to acquire EBIX would have to calculate in about a half billion dollar loss to the company in a payout to the CEO. It's not clear how that is helpful to current shareholders. The stated reason concerning an intent to incentivize the CEO to seek the highest price for a takeover doesn't make much sense. He already is a huge shareholder of the company and would no doubt have a very large personal motivation to get the highest payment possible--even without this new arrangement.

I'm a bit mixed about it, though. I'm a long term shareholder and plan to continue to be one. And while a takeover might give shareholders a large immediate gain, we might be better off without a takeover and the ability to participate in EBIX's growth over the years to come. But still, I'm not all that pleased with the arrangement.
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