TORONTO - The FALCONBRIDGE board of directors has adopted a shareholders right plan, effective immediately. The plan is "designed to enhance the company's ability to obtain the best value for all shareholders and prevent a bidder from acquiring control of Falconbridge in a manner detrimental to shareholders."
The plan is intended to forestall a creeping takeover and ensure that all shareholders are treated equally. It allows a "permitted bid" for 20% or more of Falconbridge to be made to all holders of common shares over a period of at least 60 days. The bidder must acquire at least 50% of the outstanding shares not under its control during that period or extend its offer for a further 10 days. Should an offer be made outside the definition of a permitted bid, other Falconbridge shareholders will have the right to buy up its shares at a 50% discount from the prevailing market price.
The announcement comes less than a month after Swiss mining conglomerate XSTRATA secured a 20.1% interest in Falconbridge. Xstrata's holding is not affected by the new rights plan.
Complete details of the plan are available at www.Falconbridge.com.