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Bankers Petroleum issues poison pill Add to ...

Bankers Petroleum Ltd. has adopted a rights plan to give its board and shareholders time to react in the event of a hostile takeover bid.

Existing shareholders would be able to buy shares at half the market price if someone tables an offer to buy at least 20 per cent of the company's stock without the support of the board.

Bankers says it's not aware of any takeover attempt.

The Calgary-based oil and gas producer said existing legislation would not give the company enough time to react or pursue alternatives to a takeover offer assuming one emerges.

This type of shareholder rights plan is often referred to as a "poison pill" because, if it's triggered, the market will be flooded with additional shares - making the target company much more expensive to buy.

The rights plan takes effect immediately but must still be approved by shareholders at their annual meeting in May, Bankers said.

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