Sept 6 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
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.