Solectron Announces Termination of Poison Pill.New Policy Requires Stockholder Approval for Any Future Plan MILPITAS, Calif. -- Solectron Corporation (NYSE NYSE See: New York Stock Exchange :SLR (1) (Scalable Linear Recording) A line of magnetic tape drives from Tandberg Data that evolved from the QIC Data Cartridge format. See QIC. (2) (Single Lens Reflex) A camera that uses the same lens for viewing and shooting. ), a leading provider of electronics manufacturing and integrated supply chain services, today announced that its Board of Directors has voted to terminate the company's stockholder rights plan, or "poison pill A defensive strategy based on issuing special stock that is used to deter aggressors in corporate takeover attempts. The poison pill is a defensive strategy used against corporate takeovers. ." In addition, the Board established a new corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. policy providing that any future poison pill will require stockholder approval prior to adoption. The new policy does, however, give the Board limited discretion to adopt a new stockholder rights plan without first seeking stockholder approval if a majority of the independent directors believes the implementation of a rights plan is necessary for the proper exercise of the Board's fiduciary responsibilities. In such a circumstance, the rights plan would need ratification by the company's stockholders within twelve months of adoption, or it would automatically expire. "Our decision to terminate the stockholder rights plan and establish this new policy reflects the Board's continuing commitment to corporate governance best practices," said Michael Cannon, Solectron's President and Chief Executive Officer. "The Board believes that our new policy balances our stockholders' concerns and the protection of our stockholders' best interests." The Board's actions will accelerate the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. of the company's current stockholder rights plan to November 27, 2006. It was due to expire in July 2011. About Solectron Solectron Corporation is one of the world's largest providers of complete product lifecycle services. We offer product design and new product introduction, supply chain management, Lean manufacturing and aftermarket services such as product warranty repair and end-of-life support to leading customers worldwide. Solectron works with the world's premier providers of networking, telecommunications, computing, storage, consumer, automotive, industrial, medical, and aerospace and defense products. Our industry-leading Lean Six Sigma Lean Six Sigma is a business improvement methodology which combines (as the name implies) tools from both Lean Manufacturing and Six Sigma. Lean manufacturing focuses on speed and traditional Six Sigma focuses on quality. By combining the two, the result is better quality faster. methodology (Solectron Production System[TM]) provides OEMs with quality, flexibility, innovation and cost benefits that improve competitive advantage. Based in Milpitas, Calif., Solectron operates in more than 20 countries on five continents and had sales from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $10.6 billion in fiscal 2006. For more information, visit us at www.solectron.com. Note: SOLECTRON and the Solectron logo are registered trademarks of Solectron Corporation. The Solectron Production System, SPS (Standby Power System) A UPS system that switches to battery backup upon detection of power failure. See UPS. SPS - Symbolic Programming System. Assembly language for IBM 1620. , and Solectron Supply Chain Solutions Suite are also trademarks of Solectron Corporation. Other names mentioned are trademarks, registered trademarks or service marks of their respective owners. |
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