full wsj story
FXCM Inc. has adopted a shareholder rights plan with a 10% trigger, a move intended to reduce the chance of a hostile takeover attempt at a low valuation.
The foreign-exchange brokerage’s shares plunged this month in the wake of steep client losses stemming an unexpected surge in the Swiss franc, potentially making the company more vulnerable to such a takeover attempt.
The client losses, which totaled about $225 million, stemmed from the surprise decision of the Swiss National Bank to end its cap on the franc’s exchange ratio to the euro.
After warning its required capital levels were at risk, FXCM accepted a $300 million rescue package from Jefferies Group LLC parent Leucadia National Corp.
The company’s shares, which closed Thursday at $2.24, had approached $17 a share earlier this month ahead of the bank’s decision.
FXCM said the rights plan, which is also known as a poison pill, isn’t intended to deter buyout offers that are fair and in the best interests of the company’s stockholders.
The plan would flood the market with shares when an investor’s stake exceeds 10%, making it more expensive to acquire a controlling stake.
Write to Lauren Pollock at lauren.pollock@wsj.com
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