BOISE, Idaho-Extended Systems Inc. said it has adopted a stockholder rights plan to fend off unsolicited takeover attempts.
This will be applied by issuing a dividend of one right for each share of its common stock.
“The rights plan is not intended to prevent a takeover of Extended Systems at a full and fair price,” said the company. “However, the plan contains provisions that may cause substantial dilution to a person or group that, without the prior approval of Extended Systems’ board of directors, acquires 15 percent or more of the company’s common stock.”
The move is notable as Extended Systems’ rival, Pumatech Inc., recently acquired the Starfish Software synchronization business from Motorola Inc.
