Ladish Adopts Takeover Defense Plan

Oct. 22, 2009
Shareholder rights aimed at blocking hostile bids
Directors of Ladish Co., Inc. have adopted a shareholder rights program intended to protect the Wisconsin-based forging, investment casting, and machining group and its shareholders from “potentially coercive” or hostile takeover bids. The company in a statements said the agreement is not intended to deter fully priced offers or others that are in the best interest of the company’s shareholders. The plan is effective for 10 years. The agreement grants to each holder of Ladish common stock a dividend of one right per share of common stock. “In the event that any person or group becomes an Acquiring Person and the rights are exercisable,” according to a company statement, “each holder of a right … will have the right to receive upon exercise of the right, a number of shares of common stock of the company having a market value of two times the exercise price of the right.” It’s not believed that Ladish is an acquisition target, though one of its competitors, Precision Castparts Corp., recently bought a smaller forger serving aerospace customers. Like PCC, Ladish has forging and investment casting operations.