On the heels of its Xyrem patent infringement settlement with Hikma yesterday, Jazz Pharmaceuticals (NASDAQ:JAZZ) adopts a Rights Agreement that creates substantial dilution if any person or group acquires 10% or more of its common stock without the prior approval of the board.
The company says it took action in response to the takeover environment in general and the settlement agreement with Roxane in particular.
Each Right allows the holder to purchase one ordinary share at $600. If an takeover is initiated by a third party, all Rights holders will be able to purchase ordinary shares valued at $1,200 for $600. If a hostile acquisition proceeds, each Right holder will be eligible to buy one ordinary share for $1.
The Rights expire on April 5, 2018.
Shares are up 6% premarket on increased volume.
Now read: Cui Bono, Cempra? »