NEW YORK, Oct. 5 – After announcing that it would slash 100 of 150 jobs, beleaguered bioinformatics company Genomica said that its board of directors had approved a shareholders rights plan designed to protect the company in the event of an unsolicited takeover attempt.
Under the terms of the plan, all stockholders of record as of October 24, will receive rights to purchase a new series of discounted preferred stock. The rights plan has a 20 percent trigger, meaning that the rights can only be exercised if a group or individual buys 20 percent or more of the company’s common stock or announces a tender offer for that much.
By instituting such a plan, Genomica, which closed at $2.60 on the Nasdaq on Thursday, hopes to dissuade a potential buyer from trying to overtake the company without talking with the board of directors.
“The adoption of the rights plan is intended as a means to guard against abusive takeover tactics and is not in response to any particular proposal,” Genomica said in a statement released Thursday after the close of trading.
On Thursday, Genomica of Boulder, Colo., announced that it was reducing its workforce by 67 percent after determining that the company could not realize its original goals of delivering novel software tools to the genomics market.
The company now plans to focus on combining its genetic analysis software with hardware.
Genomica's customers include AstraZeneca, GlaxoSmithKline, Aventis, and the National Cancer Institute. Genomica also has strategic alliances with Applied Biosystems and Celera.