First American Guards Against Takeover
SANTA ANA — First American Financial Corp., the nation’s leading title insurer, said Thursday that directors have adopted a shareholder rights plan designed to help the board prevent a hostile takeover.
The industry, which has been consolidating over several years, has seen a number of major deals in the making.
First American said its plan was not adopted in response to any specific threat by any outsider to gain control of the company. It also said it wasn’t aware of any such effort.
The so-called poison pill strategy is designed to guard against partial tender offers, squeeze-outs, open market accumulations and other perceived strong-arm tactics to gain control of the company without paying all shareholders an appropriate control premium.
The plan provides existing shareholders with various rights that would make it financially difficult for any outsider to acquire control.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
