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.
I think that depends on your point of view. I'm sure the board members believe they are acting in the best interest of shareholders because ultimately they think an acquisiition by Microsemi (at the offered price of $549 million) is bad for Zarlink. But no doubt that others feel differently.