NEW YORK (CelebrityAccess MediaWire) — The board of CKX has implemented a so-called 'poison pill' strategy after company founder and former CEO Robert Sillerman wrote to the board to endorse a tender off from an unidentified third party, aligned with Sillerman. The unnamed third party had written a letter to CKx's board about a possible tender offer to secure a minority share of CKx stock, which, when combined with Sillerman's holdings, would constitute a slim majority of CKx's outstanding shares.
To defend itself from this potential bid, CKx's board voted to adopt a new 'shareholders rights' plan that would allow CKx to issue preferred shares to investors to defend against "coercive takeover tactics." CKx's board has indicated that they would be receptive to takeover offers, but only to a buyer who acquires 100% of the company's shares, BusinessWeek reported.
"The preferred share purchase rights are not intended to prevent or discourage a takeover and the Board of Directors would carefully consider a fully financed offer for all of the Company's shares. The Board has the ability to redeem the rights and/or amend the Stockholders Rights Plan, including to permit an offer to purchase all of the Company's shares," the board said, in a statement.
In addition to takeover interest from Sillerman, who is in talks with One Equity Partners, J.P. Morgan Chase & Co.'s private-equity shop about a takeover bid, CKx has recieved a $600 million bid from a group led by former CKx exec and American Idol creator, Simon Fuller. – CelebrityAccess Staff Writers