Spear Financial Adopts Defense Against Takeover

Spear Financial Services, a discount brokerage based in Glendale, said its board adopted a shareholder rights plan aimed at deterring a hostile takeover of the company.

The plan is among the most common “poison pill” measures companies have adopted in recent years to thwart unwanted suitors. If an unwelcome bidder acquires 25% or more of Spear’s stock, Spear’s shareholders--except the bidder--can buy shares of Spear for half their market price.

Randy Stratt, Spear’s senior vice president, said the plan was not in reaction to a specific takeover threat, but that the board thought “now would be a good time to at least give the company some room in case others looked at us.”