Sirius protects itself from takeover
May 1, 2009
The board of directors of struggling satellite radio provider Sirius XM has approved a “stockholder rights plan” that would effectively prevent the weakened company from hostile takeovers. According to the terms of the plan, known in financial circles as a poison pill, any attempt to buy up more than 4.9 per cent of Sirius’ stock without board approval would trigger limitations on the buyer’s voting rights as well as their stake in the company. The plan includes an exception for Liberty Media, which already owns a 40 per cent stake. Sirius execs hope to win shareholder approval for the plan with a vote on June 30th.
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