COMPANY ADOPTS STOCKHOLDER PLAN.Byline: Joseph A. Giannone Bloomberg News City National Corp. said Monday it adopted a stockholder rights plan designed to make it prohibitively expensive for rivals to make a hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. . The plan provides one right for each common share held. If an investor accumulates 10 percent of outstanding shares, each right could be exercised to purchase common shares worth double the exercise price, or $90 initially. Rights, to be distributed to people holding shares on March 13, expire in 10 years. ``The plan isn't intended to discourage or encourage an offer for the company and hasn't been adopted in response to any acquisition proposals,'' Russell Goldsmith, chief executive of City National, said in a statement. City National, a commercial bank with $4.7 billion in assets and 33 banks in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , is an attractive takeover target Takeover target A company that is the object of a takeover attempt, friendly or hostile. takeover target See target company. because of its base in upscale Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. . |
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