Depomed adopts poison pill to spurn Horizon takeover bid
USA-based Depomed (Nasdaq: DEPO) on Monday adopted a shareholder rights plan in a bid to shield itself from a hostile $1.75 billion public takeover from Ireand-incorporated biopharmaceutical company Horizon Pharma (Nasdaq: HZNP; The Pharma Letter July 7).
In a filing with the US Securities and Exchange Commission, the specialty pharmaceutical company said it has implemented a poison pill plan which will be triggered if any individual or group were to buy more than a 10% stake in the firm.
A shareholder rights plan floods the market with additional stocks thereby not only diluting the share price but also making it difficult to acquire a controlling stake in the company.
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