Semtech OKs Plan to Protect Stockholders

Semtech Corp. in Newbury Park has put in place a Stockholder Protection Agreement that was adopted by its board of directors and approved by stockholders.

The purpose of the agreement is to protect stockholders against hostile takeover attempts.

Generally, the agreement provides that if a person or group acquires 25% or more of the semiconductor company’s outstanding common stock without board approval, stockholders under certain circumstances would have the right to purchase the company’s preferred stock.

The rights will be distributed to stockholders of record on July 31.