HomeFed Corp., parent of Home Federal Savings...

HomeFed Corp., parent of Home Federal Savings in San Diego, said it has approved a shareholder rights plan designed to make it more expensive for any hostile suitors to take it over. The measure would be triggered when a suitor buys a stake of 15% or more.

The rights will be issued on the basis of one right for each outstanding share of common stock owned by shareholders of record on Sept. 5. If a person or group acquires 15% or more of HomeFed shares, all shareholders other than the acquiring entity will have the right to purchase newly issued HomeFed shares at half price, diluting the value of the acquirer’s stock.

HomeFed described the plan as a way of forcing those contemplating a takeover to negotiate directly with the board or face “an extremely costly and risky situation,” HomeFed Chairman Kim Fletcher said in a statement.

“This plan will not prevent a takeover of the company,” Fletcher said. “Rather, it will allow the board to negotiate a transaction that will be fair and in the best interest of all shareholders.”

The rights plan was not adopted in response to any specific effort to gain control of HomeFed, and the company’s board is not aware of any such effort, Fletcher added.

Coast Savings in Los Angeles separately announced a similar measure on Thursday.