Aug 31 (Reuters) - Specialty metals and plastics distribution company A.M. Castle & Co’s adopted a shareholder rights plan after billionaire Tom Gores’ investment firm Platinum Equity LLC bought a stake in the company and hinted at a possible acquisition.
The rights plan will be triggered if a person or a group acquires 10 percent or more of A.M. Castle ’s common stock, without the board’s approval.
Platinum Equity earlier this month bought a 6 percent stake in A.M. Castle through metal distributor Ryerson Inc, according to a regulatory filing.
The companies intend to discuss strategic alternatives with A.M. Castle, including a possible takeover of the company, according to the filing dated Aug. 20.
The rights plan will expire on Aug. 30, 2013, A. M. Castle said on Friday.
The company’s shares, which have gained 29 percent this year, were up 2 percent at $12.21 on Friday on the New York Stock Exchange.