Why did LaBarge adopt a shareholder rights plan?
The purpose of the Rights Plan is to deter certain coercive takeover tactics and help ensure that the best interests of the shareholders are upheld in the event of a takeover attempt. Certain hostile takeover tactics unfairly pressure shareholders, squeeze them out of their investment without giving them any real choice and deprive them of the full value of their shares. A large number of companies, including a majority of Fortune 100 and Fortune 500 companies, have implemented shareholder rights plans to protect their shareholders against these tactics. We consider the plan to be the best available means of protecting both your right to retain your equity investment in LaBarge and the full value of that investment, while not preventing a fair acquisition bid for the Company. Its important to note that the rights will only be exercisable if and when the problem arises which they were created to deal with. They will then operate to protect you against being deprived of your right to sha
