Alloy Inc., a direct marketing company focused on Generation Y, said on Monday that its board of directors has adopted a shareholder rights plan. Under the plan, preferred stock purchase rights will be distributed to shareholders of record on April 28.
The stock will be distributed at the rate of one right for each outstanding share of the company’s common stock. The rights will not be triggered unless a person or group acquires 20% or more of the company’s common stock.
"The plan was not adopted in response to any specific effort to acquire control of the company," said Matt Diamond, Alloy’s CEO, in a statement. "The board adopted the new plan to protect against the possibility of future abusive takeover tactics such as partial tender offers and selective open market purchases."
