Air Products adopts poison pill

18:05 PM | July 25, 2013 | Lindsay Frost

Air Products has adopted a stockholder rights plan, or so called ‘poison pill,’ noting “unusual and substantial activity” in its shares. The plan will be triggered if a person or group acquires 10%, or 20% in the case of institutional investors, of the company’s common stock.

While the company noted unusual activity in it shares, it says the plan has not been adopted in response to any specific takeover bid. Air Products says it believes the rights plan will “help promote the fair and equal treatment of all stockholders of the company in the event of an accumulation of a substantial block of the company’s shares and ensure that the board of directors remains in the best position to discharge its fiduciary duties to the company and its stockholders.

The company will issue one preferred stock purchase right for each current share of common stock at the close of business on 5 August. The plan will expire on 24 July 2014, and the board can redeem the rights for a nominal amount at any time before the expiration, Air Products says.

Air Products recently reported that net income for the quarter ended 30 June fell 59%, to $288 million year-on-year (YOY), on sales up 9%, to $2.5 billion, because of acquisitions, including liquid carbon dioxide firm EPCO in June, and higher energy cost pass-through.