The Globe and Mail reports in its Tuesday, June 23, edition that Cineplex ($10.79) announced on Friday that its board has approved the adoption of a shareholder rights plan agreement with AST Trust Company (Canada) as rights agent.
The Globe's Brenda Bouw writes that Cineplex said in a statement, "The rights plan has been adopted to ensure the fair treatment of all shareholders in connection with any take-over bid for the company." Cineplex added that the move has not been adopted in response to any specific takeover bid "or other proposal to acquire control of Cineplex and the company is not aware of any such pending or contemplated proposals." The Globe reported on May 21 that Canaccord Genuity analyst Aravinda Galappatthige raised Cineplex to "speculative buy" from "hold," despite lingering "uncertainty" from the both the impact of the COVID-19 pandemic and the status of its $2.8-billion acquisition by Britain-based Cineworld. The shares could then be had for $13.60. The Globe reported on June 16 that Mr. Galappatthige was sticking with his "outperform" call. The shares were then worth $11.49.
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