File photo of Sandvine president and CEO David CaputoGEOFF ROBINS
Sandvine Corp. has adopted a shareholder rights plan with a 20-per-cent trigger, but the network equipment maker said it was not aware of any takeover proposal.
A shareholder rights plan, also called poison pill, allow companies to issue new shares if an investor acquires shares over a certain threshold, diluting their holdings.
The plan is subject to shareholder approval at Sandvine's annual meeting on April 5 and if effected, a rights holder can buy shares at a 50-per-cent discount to the market price at that time.
The poison pill will expire in 2015, said Sandvine, whose customers include Spanish telecom giant Telefonica, U.S. cable operator Comcast Corp. and Singapore's StarHub.
Sandvine shares closed at $1.56 on Tuesday on the Toronto Stock Exchange.