Sourcefire announces stockholder rights plan

By Lisa Kerner

Charlotte, N.C., Oct. 30 - Sourcefire, Inc.'s board of directors adopted a stockholder rights plan that gives stockholders a dividend in the form of preferred stock purchase rights.

According to the board, the plan is a reasonable method for safeguarding stockholders' interests.

The rights will be distributed on a one-to-one basis for common stock owned by stockholders of record as of Nov. 14.

Each right allows the holder to purchase one one-hundredth of a share of series A junior participating preferred stock at an initial purchase price of $30, upon certain triggering events.

The rights will expire on Oct. 30, 2018.

Chief executive officer John Burris said the stockholder rights plan was not adopted in response to any known offers to acquire Sourcefire and is not intended to prevent an acquisition of the company.

Instead, the plan is designed to encourage potential buyers to negotiate with Sourcefire's board, Burris said.

Distribution of the rights has no dilutive effect, does not affect earnings per share, is not taxable to Sourcefire or its stockholders and does not change the way in which Sourcefire's shares are traded, a company news release said.

Sourcefire, based in Columbia, Md., provides enterprise threat management solutions for information technology infrastructures.

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