Film extruder and resin producer AT Plastics Inc. of Brampton, Ontario, has softened its takeover defense plan following its April 20 annual shareholders meeting in Toronto. Chief Financial Officer Jim Donaghy said if more than 50 percent of shareholders tender their shares in a takeover bid, a shareholders' meeting will not be needed to vote on the bid. Also changed was the required time for a takeover bid to remain open, from 90 days to 75 days.
Donaghy said in a telephone interview that he feels a takeover defense plan is important to prevent an outside party from acquiring AT's technology without presenting a fair offer to all shareholders.
``The technology of our company is a big piece of the value,'' Donaghy said. No firm had announced any plan to take over AT as of April 26.
AT will maintain the core of its defense, which is a provision that any takeover offer must be extended to all of AT's shareholders.
Donaghy said the above changes to the plan will not significantly weaken AT's ability to withstand any hostile takeover.
AT last week also released its most recent quarterly results. The company reported sales of C$48.6 million (US$35.6 million) and profit of C$6.5 million (US$4.8 million) for the period ended March 31. In the same period a year ago AT reported sales of C$39.1 million (US$28.7 million) and profit of C$1.8 million (US$1.3 million).