Allied Research Corp. of Baltimore, concerned about takeover threat from a Saudi investor, has adopted several measures to thwart a hostile bid.
The company said that Kusai H.M. Azzawi, an investor who has suggested changes in the board and management of the company, has increased his holdings to nearly 22 percent of the common stock. Azzawi held about 14 percent of the stock at the time of last month's annual meeting, which he failed to attend despite saying in advance that he would nominate new board members.
Under a shareholder-rights plan adopted Sunday by the board of directors, preferred share purchase rights will be distributed as a dividend at the rate of one right for each common share held as of June 20. The rights will be exercisable and will trade separately from the common shares only if a person or group acquires beneficial ownership of 25 percent or more of the company's common shares or commences a tender or exchange offer that would result in that person or group owning 30 percent or more of the shares.