Overview
- The plan takes effect immediately and issues one right per common share, with rights paid as a dividend for shares outstanding as of March 20.
- Rights become exercisable if any person or group acquires 17.5% or more of Starz, allowing other shareholders to buy shares at a 50% discount and diluting the triggering holder.
- The company says the measure is intended to protect all investors and does not preclude the board from considering fair, negotiated offers.
- Byron Allen acquired 1,803,786 shares for about $25 million from Steven Mnuchin’s Liberty 77, and his family office signaled it may engage with management and potentially purchase more stock.
- Starz shares rose more than 3% to $15.43 following the announcement, which comes after the company’s recent spinoff from Lionsgate.