Syneron Medical Ltd. (Nasdaq: ELOS), a developer of laser aesthetic surgical treatments, fully aware that large cash reserves make public companies takeover targets for financial investors, has extended its "poison pill" protection against them.
Syneron first created the poison pill two years ago, and since the company has $222.6 million in cash and cash equivalents, it extended the poison pill, according to a statement filed with the US Securities and Exchange Commission (SEC) on Monday.
The poison pill is a mechanism to protect a public company's shareholders against hostile takeovers. Syneron's poison pill states that every shareholder will have the right to buy 1.25 company shares at $0.01 per share. If a shareholder reaches a threshold stake of 15%, the poison pill comes into effect, and will dilute the holding.
There have apparently been no takeover attempts at Syneron in the past two years, and it was actually Syneron that made an acquisition: Candela Corporation of the US for $65 million in shares.
Syneron was founded by chairman Dr. Shimon Eckhouse. The company's share price fell 3% in 2010. The share price fell 2.1% on Nasdaq yesterday to $10.24, giving a market cap of $364 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011