Parkland Fuel Corp.’s board of directors has taken steps to guard the Red Deer-based company against hostile takeover bids.
The board has adopted a shareholder rights plan that will allow Parkland shareholders to buy additional shares at a discounted price should any individual acquire 20 per cent of more of the company’s common shares.
Such a plan, which is commonly known as a “poison pill,” would dilute a takeover bidder’s interest in the company if triggered.
A release issued by Parkland said its shareholder rights plan “has not been adopted in response to, or in contemplation of, any specific proposal to acquire control of Parkland.”
Its intent is to ensure that the board has time to implement alternatives in the best interests of shareholders should a takeover bid arise, and allow shareholders to assess their options, the release added.
The plan does allow acquisition of control of Parkland through a negotiated transaction or a bid that meets specified requirements.
Parkland’s shareholder rights plan took effect immediately, but is still subject to acceptance by the Toronto Stock Exchange and shareholder ratification at the company’s May 6 annual meeting.
Parkland is Canada’s largest independent fuel distributor and marketer.