SEATTLE, Dec. 28 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) announced today that on December 24, 2009, CTI's Board of Directors (the "Board of Directors") approved and adopted a Shareholder Rights Plan (the "Rights Plan") in which one preferred stock purchase right will be distributed for each common share held as of the close of business on January 7, 2010. Initially, the rights are not exercisable, and are attached to and trade with, all of the shares of CTI's common stock outstanding as of, and issued subsequent to, the record date.
The Rights Plan is designed to deter coercive takeover tactics, and to prevent an acquirer from gaining control of CTI without offering a fair price to all of CTI's shareholders. The Rights Plan will not prevent a takeover, but should encourage anyone seeking to acquire CTI to negotiate with the Board of Directors prior to attempting a takeover.
If CTI is acquired in a merger or other business combination transaction after any such event, each holder of a right, except those held by a 20% shareholder, which become null and void, would then have the right to receive, upon exercise, common stock of the acquiring company having a market value equal to two times the exercise price of the right.
About Cell Therapeutics, Inc.
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Cell Therapeutics, Inc.
