MFC Industrial Adopts "Poison Pill"

(RTTNews) - MFC Industrial Ltd. (MIL) said Monday that its board of directors has adopted a shareholder rights plan, which is designed to encourage the fair and equal treatment of shareholders in connection with any plan to acquire effective control of the company.

The plan will expire in 12 months unless approved by shareholders.

At the close of business on November 22, 2013, one right will be issued and will attach to each common share of MFC outstanding at that time.

The rights will become exercisable in the event that any person, together, with any of its affiliates, associates or joint actors, acquires or announces its intention to acquire 20% or more of the company's shares without complying with the permitted bid provisions of the plan and where application of the plan is not waived by the board of directors in accordance with its terms.

The plan is intended to ensure that, in the context of any formal tender offer, the board of directors has sufficient time to explore and develop alternatives for maximizing shareholder value, to provide adequate time for competing transactions to emerge and to ensure that shareholders have an equal opportunity to participate in such bid. The rights will expire within 12 months, unless the plan is ratified by shareholders of the company by such date, in which case the rights will expire three years thereafter.