SAN FRANCISCO–Design Within Reach has amended its stockholder rights plan to reduce the likelihood that a potential buyer would gain control of the retailer by open market accumulation or other coercive takeover tactics without paying a premium for its shares.
Earlier this month, the modern furniture retailer hired Thomas Weisel Partners LLC to help it review strategic alternatives, including a sale of the company due to a depressed stock price. The move coincided with “an unsolicited offer recently received by the company,” the retailer said, in a statement.
Design Within Reach’s stockholder rights plan has been amended so that if any person or group acquires 15 percent or more of the outstanding shares of the common stock, “there will be a triggering event under the rights plan causing substantial dilution to such person or group,” the retailer said.