Cinram Int'l adopts poison pill defense
Canadian company attempting to forestall possible takeoverTORONTO -- Having recently lost Warner Home Video as a customer, multimedia product maker Cinram International Income Fund has become the latest Canadian player to adopt a poison pill defense to forestall a possible hostile takeover.
Toronto-based Cinram International said the unitholder rights plan aims to give the company sufficient time to look for alternatives should "an unsolicited bid" emerge.
Cinram, which makes pre-recorded DVDs and other media, said it did not know of a potential takeover bid in the offing.
Introducing a poison pill follows Vancouver-based Lionsgate launching a series of anti-takeover defenses against hostile takeover bid from activist shareholder Carl Icahn.
Shares in Cinram on the Toronto Stock Exchange swooned this summer on news that a six-year DVD pact with Warner Home Video was ending on Aug. 1, a loss that is also expected to dampen the upcoming third quarter results.