Siebel puts anti-takeover measures in place

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Is there something they want to tell us? Siebel has adopted a poison pill to prevent a hostile takeover bid but insists that there is no predator circling the company.

Siebel said the adoption of the plan is not a response to any particular proposal, but a means to guard against abusive takeover tactics.The stockholder rights will be exercisable only if a person or group acquires 15 percent or more of the company's common stock or announces a tender offer for 15 percent or more of the common stock.

The news comes a week after Siebel canceled $26 million share options held by CEO Tom Siebel after criticism that the company had diluted shareholder returns through excessive option grants. The cancellation of Siebel's options, worth $56.1 million, reduced his ownership in the company to 10.7 percent from 13.5 percent. Siebel will be exempt from the new rights plan.

Siebel’s share price has plummeted 76 per cent in past 12 months. The company’s market capitalisation has fallen to around $4.12 billion from a November 2000 high of $62 billion.

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