Contactless microprocessor provider On Track Innovations Ltd., Fort Lee, N.J., has adopted a shareholder rights plan designed to protect their investment in the event of an unsolicited attempt to acquire the company.
The plan is similar to that adopted by publicly traded companies and is not intended to prevent a takeover of the company on terms that are fair to, and in the best interests of its shareholders, the company says. OTI also believes the plan will provide shareholders a “full and fair price” in the event of a takeover attempt, although no such takeover has been announced.
The plan will become exercisable only after a person or a group attempts to obtain 15% or more of the company’s ordinary shares, OTI says. However, if the purchasing firm has been approved by the board, the rights aren’t exercisable, OTI adds. ![[end]](/resources/bullet/archive-4.gif)
