September 6, 2012 / 12:51 PM / 5 years ago

Digital Generation adopts poison pill

Sept 6 (Reuters) - Digital Generation Inc adopted a shareholder rights plan a month after it said it was considering a sale of the company.

The advertising distribution company rejected a takeover bid by rival Extreme Reach Inc, Reuters reported in June.

A shareholder rights plan, also called a poison pill, allows companies to issue new shares if an investor acquires shares over a certain threshold, diluting their holdings.

Digital Generation said the poison pill, in place until March 5 2013, will trigger if a shareholder acquires more than 10 percent of the company's shares.

Analysts have said that Digital Generation, formerly known as DG FastChannel, is a potential acquisition target for companies such as Google Inc and Yahoo Inc.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below