Spectrum Pharmaceuticals, Inc. announced today that on November 29, 2010 its Board of Directors met with its legal and financial advisors to consider Spectrum Pharmaceuticals' current stockholder rights agreement, which originally was adopted in 2000 and is scheduled to expire on December 13, 2010. At the meeting, the Board voted unanimously to approve Spectrum Pharmaceuticals' entry into a replacement rights agreement that will extend until December 13, 2020 the framework of the current rights plan. A stockholder rights agreement is designed to deter coercive, unfair, or inadequate takeovers and other abusive tactics that might be used in an attempt to gain control of Spectrum Pharmaceuticals without paying all stockholders a fair price for their shares. A stockholder rights agreement will not prevent takeovers at a full and fair price, but rather is designed to deter coercive takeover tactics and to encourage anyone attempting to acquire Spectrum Pharmaceuticals to first negotiate with the Board of Directors.
The rights under the replacement plan are expected to expire on December 13, 2020, unless the rights are earlier redeemed or exchanged.
A copy of the stockholder rights agreement will be contained in a Form 8-K to be filed with the Securities and Exchange Commission on or shortly after the record date.
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