Datron Systems Adopts Anti-Takeover Rights Plan

Datron Systems Inc., a Simi Valley producer of satellite-receiving dishes and other communications products, adopted a common anti-takeover tactic known as a shareholders’ rights plan.

The plan’s key feature says that if an unwelcome party acquires at least 20% of Datron’s stock, the remaining shareholders have rights to buy additional Datron shares for half price. The idea is to increase the number of shares outstanding and make a hostile takeover of the company prohibitively expensive.

Datron said the rights would cover its shares outstanding on Sept. 5. The rights also can be redeemed by management in the event Datron’s directors accept a merger offer.