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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.