SCIENCE/TECHNOLOGY : Printronix Inc. Adopts Stock Purchase Plan Designed to Deter Takeovers

Worried that its low stock price could entice an unwanted takeover attempt, Printronix Inc. has approved a plan designed to frustrate unfriendly suitors who may try to gain control of the Irvine manufacturer of computer printers.

The anti-takeover plan would make any hostile bid more difficult to succeed, said Robert A. Kleist, the company’s president.

Kleist said he is not aware of any activity indicating that the company is a target for a takeover, but recent takeover activity in the computer industry and “the low price of our stock” prompted the company’s directors to adopt the plan.

Printronix stock, which has traded as high as $11 per share during the past 52 weeks, recently has traded at about $7 per share.

The anti-takeover plan would be triggered 10 days after someone acquires 20% or more of Printronix’s stock or starts a tender offer that would result in the acquisition of 30% or more of the company. Under the plan, Printronix shareholders would receive the right to purchase a number of Printronix shares equal to the number they hold. The price for each “right” would be $35 a share.

“The rights are designed to assure that all Printronix shareholders receive fair and equal treatment in the event of any proposed takeover of the company and to guard against partial tender offers and other abusive tactics to gain control of the company without paying all the stockholders the fair value of their shares, including a ‘control premium,’ ” Printronix said.