Yahoo Moves to Discourage Hostile Takeover

Internet portal Yahoo Inc., whose stock has plummeted in recent months amid a general Internet sell-off, said its board adopted a shareholder rights plan to discourage a hostile takeover bid. Under the plan, rights will be distributed as a dividend at the rate of one right for each share of Yahoo common stock held by shareholders of record at the close of business March 20. “The rights plan was not adopted in response to any effort to acquire control of Yahoo,” the company said. Yahoo said that each right under the new plan will allow shareholders to buy one unit of a share of a series of preferred stock for $250. Those rights will be exercisable only if a person or group acquires beneficial ownership of 15% or more of Yahoo common stock or commences a tender or exchange that would give that person or group 15% or more of Yahoo’s common stock. Yahoo said a copy of the plan would be filed with the Securities and Exchange Commission. Yahoo shares have traded as high as $205.63 over the last 12 months. Shares of the Santa Clara, Calif.-based company rose 63 cents to close at $24.44 on Nasdaq.