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Sun-Rype gives up poison pill v Clearly Canadian

Published on .

VANCOUVER -- Sun-Rype Products Ltd. of Kelowna, British Columbia, has killed its shareholder rights protection plan which gave it the right to issue shares to thwart an unwanted takeover by Clearly Canadian Beverages of Vancouver.

While the board of the fruit juice Sun-Rype company strongly opposed a $30m takeover attempt by Clearly Canadian last month, it now says it is confident that Sun-Rype shareholders will see the offer is not in their best interests.

The shareholder rights protection plan was canceled on the eve of a B.C. Securities hearing in which Clearly Canadian was to complain about the poison pill strategy. The cancellation of the hearing saves Sun-Rype money though it has already spent $555,000 fighting the takeover bid. Shareholders will now vote on Clearly Canadian's bid, which expires August 19.

Copyright July 1996 Crain Communications Inc.

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