SAN FRANCISCO—In an apparent bid to thwart a hostile takeover attempt by Microsemi Corp., Canadian chip vendor Zarlink Semiconductor Inc. said Monday (July 25) that its board of directors has adopted a limited duration shareholder rights plan that prevents anyone from acquiring the right to vote on more than 20 percent of the company's outstanding shares.
Zarlink's board also authorized the issue of one share purchase right for each of the company's outstanding shares at the close of business Monday. The rights will become exercisable if a person, company or group holding more than 20 percent of the firm's stock announces a takeover bid for Zarlink, the company said. Each share purchase right would entitle holders of Zarlink to buy common shares at a substantial discount, Zarlink said.
Last week, Microsemi—which previously tried and failed twice to acquire Zarlink—announced that it made a third offer to acquire the company for $548.7 million in cash. Zarlink's board rejected the offer, saying it was too low.