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RuggedCom adopts poison pill in wake of Belden bid

Tags: RuggedCom

RuggedCom Inc. (RCM-T) said it adopted a shareholder rights plan in response to U.S. cable manufacturer Belden Inc.'s $280-million unsolicited bid.

The rights plan -- commonly referred to as a poison pill -- will be exercised if a person or a group acquires 20 percent or more of its shares.

The plan will expire at the close of business on June 23, 2012, RuggedCom said in a statement.

The company makes routers, ethernet cables environment to facilitate robust two-way communication in harsh environment and serves the electric power, transportation systems, military applications and industrial processes markets.

RuggedCom had said Belden's offer was "opportunistic." On Wednesday, it said adopting the poison pill will give it time to solicit other proposals.

Belden had earlier said it will not purchase any RuggedCom shares till January 25.

Shares of RuggedCom had fallen more than 30 percent this year before Belden's offer last week.

RuggedCom has been seen as an attractive buy for bigger players like Cisco Systems Inc., Siemens AG, ABB and General Electric Co, who have been scouting the globe for expertise and technology in the smart grid growth market.

Analysts think Belden's $22-per-share offer undervalues RuggedCom and it may have to sweeten its bid by about $6 a share.

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