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Belden challenges RuggedCom board’s shareholder rights plan

Belden Inc. has applied to the Ontario Securities Commission (OSC) for an order to cease trading with respect to the shareholder rights plan recently adopted by RuggedCom's board of directors in response to its all-cash offer to...


January 11, 2012  


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Belden Inc. has applied to the Ontario Securities Commission (OSC) for an order to cease trading with respect to the shareholder rights plan recently adopted by RuggedCom’s board of directors in response to its all-cash offer to acquire the company.

It claims the “rights plan constitutes an improper defensive tactic implemented by the board without the approval of its shareholders.”

Belden said in a release it believes the “object and effect of the rights plan is to deprive RuggedCom shareholders of their fundamental right as shareholders to each decide for themselves whether to tender their shares to the offer.”

Since its offer to purchase all of the outstanding common shares expires on Jan. 25, the company is requesting that the OSC convene a hearing on this matter by no later than Jan. 23.