Security Pacific’s board adopted a takeover defense...

Security Pacific’s board adopted a takeover defense designed to force a potential acquiring firm to deal with the board or face much higher costs. The Los Angeles-based bank holding company said its action was not the result of any known takeover effort. The plan is similar to defenses adopted by other corporations recently. While it would not prevent a takeover, the company said the plan would make a hostile attempt more expensive by issuing new stock to existing stockholders if someone acquires 20% of the company’s stock or announces plans to acquire that much. The issuance of the new stock can be overridden by the board.