Capstone Turbine Prompts Takeover Interest

July 07, 2005 by Jeff Shepard

Capstone Turbine Corp. (Chatsworth, CA), a microturbine power systems manufacturer, reported that third-party companies have recently expressed interest in taking over the company due to an a stockholder rights plan, adopted by the board, to ensure equal treatment in the event of a takeover attempt. It said its goal is not to prevent an acquisition, but to deter coercive takeover tactics.

The plan calls for shareholders of record on July 18, 2005, to get rights to buy one share of preferred stock for $10 for each share they already own. The rights would be exercisable only if a person or group acquired 15 percent of the company. The rights are set to expire in the year 2015.