Alaska Air Group, Seattle, today announced it will eliminate the company’s shareholder rights plan, citing opposition by Providence Capital and other shareholders as the reason for ending the anti-takeover device, according to a statement by Alaska Air’s board of directors.
"In general, corporations institute shareholder rights plans as one means of maximizing value in the event of a hostile takeover,” according to a company statement. "However, some shareholders argue they discourage acquisitions altogether.”
Providence, a shareholder activist investor, submitted an anti-poison-pill bylaw amendment and an alternative slate of director nominees.
