The board of directors at Mid-America Bancorp, Louisville, Ky., has adopted a poison pill to fend off unwanted suitors.
The plan would be triggered if an unfriendly party accumulated 15% of the $1.5 billion-asset company's stock. Shareholders would receive the right to buy an additional share of Mid-America stock for each share the stockholder owns. If activated, the plan would dilute Mid-America's stock and minimize a hostile shareholder's impact.
Chairman Bertram W. Klein said the anti-takeover plan would not prevent the company from accepting a fair price. Still, Mr. Klein said Mid-America wants to remain independent.
Mid-America, which owns 33 branches in Kentucky, is one of about 200 banks nationwide that have adopted poison pills in recent years, Mr. Klein said.