Directors of Wynn’s International adopted an anti-takeover provision Friday that will allow shareholders to buy shares at a bargain in the event of a hostile takeover.
As of March 15, stockholders will be entitled to purchase either Wynn’s stock or stock in a merged company at half the market value if an investor acquires more than 25% of Wynn’s stock without its board’s approval, according to Greg Gibbons, a spokesman for the Fullerton-based firm.
Earlier this year, two investors increased their ownership in Wynn’s, prompting speculation that the investors might be interested in acquiring a majority of the company. Heinz Prechter, chairman of a Michigan car-top maker, has acquired 6.1% over the past several months and Gamco Investors, a New York money management firm, has increased its holdings to 15.9%.
In February, the New York investment group of Shufro, Rose & Erhman announced that it would like to sell its 20.8% stake in the firm, which is best known for its automotive engine additives.
The company said the shareholder rights plan was adopted as a precautionary measure and was not in response to any specific takeover bid. Gibbons said he has not been notified of additional investments in Wynn’s, and he said there are no plans to sell the company.
The announcement came after the stock market closed Friday. Wynn’s stock closed the day at $26.38 per share, up 38 cents for the week.