CoCensys OKs Stockholder Rights Policy

The board of CoCensys Inc. said Thursday it has approved a stockholder rights plan in the event of a takeover action.

A spokesman said the rights plan was not adopted in response to, nor is the company aware of, any effort to acquire control of CoCensys, an Irvine-based drug development company.

The plan provides for a dividend distribution of one right for each common share to holders of record May 15, 1995, which can be exercised when an acquiring party accumulates 20% or more of CoCensys’ voting stock, or if a party announces an offer to acquire 20% or more.

Each right will entitle the holder to buy 1/100th of a share of a new series of preferred stock at $25 each. In addition, holders of the rights will be entitled to buy either CoCensys’ stock or shares in an acquiring entity at half the market value.