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Sirius XM Moves to Dilute Voting Rights of Unfriendly Stock Buys

Karmazin says it's not an anti-takeover move

Sirius XM this week said its board approved a “stockholder rights plan” to preserve the tax benefits associated with the company’s tax net operating losses.

According to the terms of the plan, those who try to buy 4.9 percent or more of outstanding shares of Sirius’ stock without board approval would see “a significant dilution” in their voting rights and economic ownership, according to the satcaster. Sirius execs plan to submit the plan for shareholder approval by June 30 of next year.

“This rights plan protects the interests of all stockholders and preserves these substantial tax benefits for the company,” said Sirius XM President/CEO Mel Karmazin. “The rights plan is intended to enhance stockholder value; it has not been implemented for defensive or anti-takeover purposes.”