Golden Rule adopts poison pill

Calgary-based Golden Rule Resources (TSE) has adopted a shareholders’ rights plan to protect the company from hostile takeovers.

Under the plan, if any person or group acquires more than 10% of Golden Rule, shareholders will automatically be entitled to purchase common shares of the company at half of market price. The rights are not triggered by purchases made through a permitted bid.

The poison pill was implemented in response to directors’ concerns that large blocks of shares could be acquired at a discount to their underlying value. It will be submitted for shareholder ratification at a meeting to be held within the next six months.