WATERLOO, Ont. – Struggling network technology firm Sandvine Corporation (TSX:SVC) has adopted a shareholder rights plan, a defensive measure it can use if a hostile takeover offer emerges.
The Waterloo, Ont.-based company said Wednesday that its plan would kick in and separate rights from common shares if a person acquires 20 per cent or more of the common shares. That will allow the holder to purchase common shares at a 50 per cent discount to their market price.
Get weekly money news
Sandvine said it is unaware of any third party that’s seeking control
The rights plan has been conditionally approved by the Toronto Stock Exchange, subject to shareholder approval during its annual meeting on April 5.
Sandvine provides network equipment and software for high-speed network operators. Its technology helps manage network congestion, prioritize multimedia services and create new services and revenues.
The company has been posting quarterly losses as it grapples with restrained spending by some of its largest customers.
In January, Sandvine posted the latest in a series of quarterly losses, while revenue fell on the lower end of its guidance, which it had already scaled back a month earlier.
Comments
Want to discuss? Please read our Commenting Policy first.