EMERYVILLE, Calif. — The board of directors of Jamba Inc. has adopted a stock purchase rights plan as a means to ward off an unsolicited attempt to acquire the company. The plan is not in response to any proposal to acquire Jamba, the company said.
Under the rights plan, stockholders of record at the close of business on Oct. 20, 2008, will receive one share purchase right for each share of Jamba common stock.
The rights become exercisable when a person or group acquires 15 percent or more of Jamba's common stock without prior board approval. In that event, the rights permit Jamba stockholders, other than the acquiror, to purchase Jamba common stock having a market value of twice the exercise price of the rights, in lieu of the preferred stock. Alternatively, when the rights become exercisable, the board may authorize the issuance of one share of Jamba common stock in exchange for each right.
In addition, in the event of certain business combinations, the rights permit the purchase of the common stock of an acquiror at a 50 percent discount.
