Henderson firm adopts poison pill measure

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Friday, Nov. 12, 1999 | 11:30 a.m.

AgriBioTech Inc. of Henderson announced today that its board of directors adopted a "poison pill" provision to ward off hostile takeover attempts.

Under the plan, all AgriBioTech shareholders will receive a right to purchase shares of AgriBioTech stock at a 50 percent discount to its current market price. The rights will become exerciseable if any party acquires or announces an attempt to acquire 15 percent or more of the company's stock. The poison pill was not adopted in response to any pending takeover attempt, the grass seed company said.

"The effect will be to discourage acquisitions of more than 15 percent of AgriBioTech common stock without negotiations with the board," AgriBioTech said.