SBS Technologies, Inc. Adopts Shareholder Rights Plan
SBS Technologies, Inc. ("SBS") (NASDAQ: SBSE) today announced that its Board of Directors has adopted a Shareholder Rights Plan (the "Rights Plan") under which Common Stock purchase Rights will be distributed to shareholders of record as of the close of business on October 10, 1997. The Rights Plan was not adopted in response to any known effort to acquire SBS. The Rights plan is designed to deter greenmail and coercive or unfair takeover tactics and to prevent an acquirer from gaining control of the Company without offering a fair price to all of the Company's shareholders. It should also encourage anyone seeking to acquire the Company to negotiate with the Board of Directors first. Each shareholder will receive one Right for each share of Common Stock held. Each Right will initially entitle a shareholder to purchase six shares of Common Stock at a price of $20 per share upon the occurrence of specified events. "The new Rights Plan is similar to plans adopted by many other public companies and will provide a sound and reasonable means of safeguarding the interests of all shareholders, should an effort be made to acquire SBS at a price not reflective of its fair value," said Christopher J. Amenson, Chairman of the Board and CEO of SBS. "Although we are not implementing this Rights Plan at this time in response to any efforts to acquire SBS Technologies, we are taking this measure as a matter of appropriate protection of our shareholders' interests," Amenson added.