Following a series of hostile acquisitions in the global steel industry, Nippon Steel Corporation announced the implementation of a “poison-pill” plan designed to fend off any hostile takeover bids for the Japanese steel company. Under the plan, if a hostile buyer attempts to acquire a stake of 15 percent or more in the company, the steelmaker’s shareholders would be allowed to double the number of shares they own for a nominal amount. Executives of Nippon Steel indicated that adoption of the plan was aimed at fending off potential acquirers who might damage the firm’s corporate value. Market analysts expressed concern that the poison-pill defense would adversely affect the firm’s share price. Discuss how Nippon’s poison-pill defense could prevent an unwanted takeover bid and why the plan might actually hurt the company’s share price.