FREMONT, Calif.--DSL-chip maker Centillium Communications Inc. today announced its board approved the adoption of a stockholder rights plan.
The plan is designed to assure that Centillium stockholders receive fair value in the event of a future unsolicited business combination or similar transaction involving the company in a manner or on terms not approved by its board.
Under the plan, Centillium will issue a dividend of one right for each outstanding share of common stock of the company held by stockholders of record as of the close of business on Jan. 9, 2003. Each right will initially entitle stockholders to purchase a fractional share of the Company's preferred stock for $25.00.
The rights will become exercisable only after the occurrence of certain specified events, including the acquisition of 15% or more of Centillium's outstanding common stock by an unsolicited third party acquiror.