The board of cosmetic surgery equipment maker Syneron Medical Ltd. (Nasdaq: ELOS) yesterday adopted a shareholder rights plan. The plan is basically a poison pill, aimed at protecting shareholders from a hostile takeover.
The company stated, "The shareholder rights plan was adopted following evaluation and consultation with outside advisors in consideration of the company's current low valuation and strong cash position."
Under the plan, each shareholder will receive a dividend of one right for each ordinary share held on November 9. The rights will be exercisable only if a person or group acquires 15% or more of the company, or makes an offer for 15% or more of the company. In such an event, each shareholder, the buyer excepted, will have the right to buy two Syneron shares at a strike of price of $0.01 per share.
Syneron's share fell 14% yesterday to an all-time low of $7.96, giving a market cap of $218 million, equal to its cash reserves.
At the end of June, the Baupost Group was Syneron's largest shareholder, with an 11.1% stake. Syneron chairman Shimon Eckhouse owned 9.5%, Genesis Asset Managers LLP owned 6.6%, Brandywine Global Investment Management LLC owned 6.2%, Renaissance Technologies LLC owned 4.4%, and FMR LLC owned 3.8%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2008
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