NEWARK, Del. (AP) ¿ Chemicals producer Innospec Inc. on Friday said its board approved a stockholder rights plan, often called a "poison pill," which is typically intended to protect a company from a hostile takeover bid.
Innospec said its plan "is designed to enable all Innospec stockholders to realize the full long-term value of their investment and to provide for fair and equal treatment for all stockholders in the event that an unsolicited attempt is made to acquire the company."
The chemicals industry has seen a handful of high-profile combinations in the past year, although the economic downturn has slowed activity.
Innospec said its board believes the value of its business is not reflected in the current market price of the company's stock, which may make it vulnerable to hostile takeover tactics.Innospec shares closed at $10.65 Friday, up about 81 percent since the start of the year. closed 12/31 at $5.89 The stock traded as high as $32.45 two years ago, and in the past 52 weeks has moved between $2.61 and $24.06. Innospec said its rights plan will protect shareholders against takeover tactics that may be used to gain control without paying a price in the best interest of investors. In aftermarket electronic trading, Innospec shares slipped 17 cents to $10.48