Steps Taken by GB Foods to Protect Against Takeovers

GB Foods Corp., which operates the Green Burrito chain of Mexican restaurants, said Monday it has taken steps to provide more protection from an unwanted takeover.

The company said, however, that it is not aware of any such effort.

Under the plan, stockholders will receive rights to acquire additional shares of the company’s stock at a discount to the market price if an individual or group acquires a stake of 15% or more. The rights distribution will be made Aug. 1 to shareholders of record that day, and will expire July 9, 2006, the company said.

The rights agreement exempts ownership of GB Foods common stock by William M. Theisen, the company’s chairman, president and chief executive officer, as well as current holders of warrants to purchase 1 million or more shares of common stock.