Allscripts Healthcare Solutions Inc. said Monday that it has adopted a plan to protect itself from any potential "unfair or coercive" takeover efforts.
The Chicago-based maker of electronic health record software, its stock down more than 44 percent for the year, said the plan "was not adopted in response to any current hostile takeover attempt."Shares of the company plunged 36 percent on April 27 after the company said its chairman was ousted, three directors quit and its first-quarter profit fell 54 percent to $5.8 million.
Under terms of the "stockholder rights plan," shareholders will be allowed to buy Allscripts' common stock at half price if a person or entity acquires or seeks to acquire 10 percent or more of the company's stock. It exempts those who already own 10 percent or more of Allscripts' common stock, though the plan contains a trigger mechanism if those investors purchase more shares, the company said in a statement.
Dennis Chookaszian, Allscripts' new chairman, called the plan a "temporary measure" that seeks to "ensure that shareholder value is protected."
The board, he said, "believes our current share price does not adequately reflect the Company's long-term potential." Shares of Allscripts opened Monday at $10.55.
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