Simulation Sciences Adopts Poison Pill Plan

Directors of Simulation Sciences Inc. approved a so-called poison pill stock purchase plan aimed at making a hostile takeover too expensive by increasing the number and cost of shares that would have to be purchased.

Conversely, the plan allows a suitor approved by the company’s directors to acquire shares at a discount.

Company officials are not aware of any takeover effort, said President Charles R. Harris. Rather, the plan was adopted to give the software company a weapon against any future effort.

Harris said that similar shareholder rights plans have been adopted by more than 2,000 companies in recent years.

The plan would be kicked off after any individual or group acquired 15% or more of Simulation Sciences common stock--an amount generally considered to indicate the start of a takeover effort. Stock purchase rights related to the plan will be distributed Aug. 28 to shareholders of record on that date.

Simulation Sciences provides commercial simulation software to the petroleum, petrochemical and industrial chemical processes industries.