Deluxe Corp., the nation's largest check printer, has extended its takeover defense plan for another decade, with some tweaks.
The Shoreview, Minn., company said Tuesday that the extension of the shareholder rights plan was not a response to any current attempts to take over the company, whose sales and earnings have dropped as it has tried to reposition itself as a commercial printer.
The plan, designed to guard against a hostile takeover by a minority shareholder, had been set to expire Jan. 31 but was extended through the end of 2016. The plan gives shareholders the right to purchase additional shares, at a steeply discounted price, if one shareholder acquires a certain percentage of the outstanding stock. Doing so would flood the market with new shares, making an unsolicited bid more expensive, and could prompt a prospective acquirer to negotiate an amicable deal.
Deluxe lifted the threshold for triggering the rule to 20% of the outstanding shares, from 15%. It also required its independent directors to review the plan at least once every three years.
