Canada's Belo Sun Mining adopts poison pill

Mon Apr 23, 2012 8:58am EDT
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(Reuters) - Canada's Belo Sun Mining Corp (BSX.TO: Quote) adopted a shareholder rights plan with a 20 percent trigger, but the gold miner said it was not in response to any takeover proposal.

A shareholder rights plan, also called poison pill, allows companies to issue new shares if an investor acquires shares over a certain threshold, making it more difficult to take over the company.

If the plan is effected, subject to Belo's shareholder approval by October 23, a shareholder can buy shares at a 50 percent discount to the market price at that time, the company said in a statement.

Belo's shares closed at 94 Canadian cents on Friday on the Toronto Stock Exchange.

(Reporting by Arnav Das Sharma in Bangalore; Editing by Don Sebastian)