© Reuters.
(Reuters) – Activist hedge fund Starboard Value LP sent an open letter to the board of Mercury Systems (NASDAQ:) on Thursday asking the defense technology firm to eliminate the shareholders rights plan it recently adopted.
A shareholder rights plan, popularly known as a “poison pill”, is a defensive strategy to avert hostile takeovers. The plan, usually triggered when a party buys a certain percentage of a firm, lets existing investors purchase more shares at a discount.
Starboard owns about 7.33% of Mercury and has asked the company to raise the ownership threshold which triggers the rights plan to 15% from the current 7.5%, if it cannot fully remove the rights plan.
“We believe the rights plan is not in the best interests of the company’s shareholders,” Starboard said in its letter.
Mercury did not immediately respond to a Reuters request for comment.
On Dec. 28, Mercury Systems had adopted a shareholder rights plan with a one-year duration.
Separately, activist investor Jana Partners said last month that it would push Mercury to consider options for its business, including a potential sale.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
