(Reuters) - Canada’s Belo Sun Mining Corp BSX.TO 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