Santa Ana, California–Microsemi Corp., a designer, manufacturer and marketer of analog, mixed-signal, and discrete semiconductors, recently announced that its board of directors has approved a shareholder rights plan to protect stockholders from any unsolicited attempt to acquire the company.
While the shareholder rights plan will not prohibit the acquisition of the company, it establishes certain rights to help ensure that any acquiror treats all stockholders equitably. The rights may be redeemed by the company at the discretion of the board at any time and therefore should not interfere with any merger or business combination that is approved by the board. The rights, distributed as a dividend December 22, 2000, may be redeemed.
“The plan should be characterized as a precautionary measure. Many companies have taken similar measures in recent years,” stated David R. Sonksen, executive vice president and chief financial officer. “Up to 60% of all Standard & Poor’s 500 companies have similar shareholder rights plans in place. The board unanimously approved the Shareholder Rights Plan, which is a means of realizing the ultimate desire on the part of the board that each stockholder can someday realize the full value of their stock in the future. The move is not in response to a takeover attempt, but is rather adopted to continue a plan that was in place from 1988 to 1998.”