Exide Technologies protects against takeover

Exide Technologies _ a leading producer and recycler of lead-acid batteries _ said Monday it has adopted a shareholder-rights plan to protect investors in the event of a takeover bid, but the company didn't say if it has received an offer.

An investor relations spokeswoman did not immediately return a call seeking comment.

The right's plan will let shareholders buy additional shares at a discount if a person or group of investors _ except for the company, certain people and some institutional investors _ buys at least 20 percent of the company's common shares.

The plan also triggers if a person or group that already owns 20 percent or more of Exide's outstanding common shares buys more shares of the company.

Rights held by those who surpass the limit will be void, the company said.

Shares of the Alpharetta, Ga., company shot up 75 cents, or 19.5 percent, to $4.59 in afternoon trading.

The plan is meant to protect investors from "potentially coercive takeover practices or takeover bids that are inconsistent with the interests of the Company and its stockholders," Exide said in a statement.

"The adoption of a stockholder rights plan is a well-accepted approach to ensuring that all stockholders receive a fair price and are treated equally in the event of a takeover," the company said.