March 1, 2001 6:30 PM PST

Yahoo plans to thwart "coercive takeover tactics"

Leading Web portal Yahoo said late Thursday it has adopted a shareholder rights plan to deter a hostile takeover of the company.

The company's shares have plunged nearly 90 percent from their one-year high, possibly making the company an attractive takeover candidate for a company seeking to buy a massive presence on the Web. However, Yahoo said the rights plan was not "adopted in response to any effort to acquire control of Yahoo."

"The rights plan is designed to deter coercive takeover tactics, including the accumulation of shares in the open market or through private transactions and to prevent an acquirer from gaining control of Yahoo without offering a fair and adequate price and terms to all of Yahoo's stockholders," the company said in a statement.

Yahoo shares closed Thursday at $24.44, well below their 52-week high of $205.62. The company has a market capitalization of about $13 billion, compared with more than $100 billion when its shares peaked at a split-adjusted $237.50 on Jan. 3, 2000.

Under the plan, Yahoo shareholders will have the right to buy "one unit of a share" of preferred stock for $250 if a person or group acquires at least 15 percent of the company's stock. The rights apply to shareholders of record as of March 20, 2001, and expire March 1, 2011.

 

Join the conversation

Add your comment

The posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.

What's Hot

Discussions

Shared

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.