Business software company SPSS Inc. said Wednesday its board has approved a new shareholder rights plan.
Subsequently, each shareholder will receive a tax-free dividend of one common share right for each outstanding share of SPSS, the company said. The dividend will be distributed on June 18 to shareholders of record as of that date.
The rights replace the ones under the company's existing plan, which expire on June 18.
Each right entitles the holder to buy one one-half of a share of common stock at an exercise price of $175.
The rights are exercisable only if a person or group acquires 15 percent or more of SPSS common stock. The rights expire on June 18, 2018.
A shareholder rights plan, or "poison pill" provision, generally makes a hostile takeover more expensive for the buyer. SPSS said the plan is not designed to prevent a "fairly-valued" bid for the company.
SPSS shares rose 31 cents to close at $39.03. Shares added 5 cents to $39.08 in after-hours trading.
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