Drug developer Zymeworks adopts ‘poison pill’ to keep All Blue at bay

(Reuters) – Most cancers remedy developer Zymeworks Inc stated on Friday it had adopted a “poison tablet” to thwart a hostile takeover from All Blue Capital, a month after rejecting the funding agency’s $773 million bid on valuation grounds.

Vancouver, Canada-based Zymeworks stated the shareholder rights plan would cease traders from amassing greater than 10% of its share, or 20% within the case of some passive traders.

Poison capsules, such because the one not too long ago adopted by Twitter Inc earlier than it accepted Elon Musk’s buyout bid, make a takeover harder by permitting present shareholders to purchase shares at a reduction, diluting a suitor’s possession stake.

In a submitting late final month, All Blue Falcons raised its stake in Zymeworks to six.9%.

The rights plan will expire in June subsequent yr.

(Reporting by Manas Mishra in Bengaluru; Enhancing by Anil D’Silva)