TEKELEC BOARD PUTS POISON PILL DEFENSE IN PLACE.Byline: Ben Sullivan Daily News Staff Writer
Tekelec, a Calabasas-based maker of diagnostic and network switching equipment for the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry, is circling its wagons.
The company's board of directors late Monday instituted a shareholders' rights plan to thwart what it termed ``takeovers that involve abusive Tending to deceive; practicing abuse; prone to ill-treat by coarse, insulting words or harmful acts. Using ill treatment; injurious, improper, hurtful, offensive, reproachful. tactics or do not provide fair value to shareholders.''
A spokesman for the company said Tekelec had no particular suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) in mind when it implemented the plan, but said recent earnings by the company, new contracts and a large cash supply make it an attractive takeover target Takeover target
A company that is the object of a takeover attempt, friendly or hostile.
See target company. .
The plan gives current shareholders the right to buy Tekelec shares for half their market price if any outside entity buys more than 15 percent of the company. And they could buy as many discounted shares in Tekelec as they currently hold.
The plan also gives current shareholders the right to buy a like number of shares in any suitor company at a similar 50 percent discount if the firms are subsequently merged.
Company spokesman Chris Danne said the plan is not meant to discourage all potential buyers, but to let current shareholders fend off Verb 1. fend off - prevent the occurrence of; prevent from happening; "Let's avoid a confrontation"; "head off a confrontation"; "avert a strike"
deflect, forefend, forfend, head off, avert, stave off, ward off, avoid, debar, obviate unwanted bids.
Tekelec shares closed Tuesday at $32.87. The shares have risen nearly 300 percent since the first of the year when they were trading at just over $8.