NEW YORK – Spinneyhead’s chances of remaining independent are beginning to look slim to none especially as the blogging sector braces itself for the long anticipated JohnnyTheo.Com.
There’s long been pressure for the world famous www.spinneyhead.com to marry up with a media power in order to compete with the likes of the new JohnnyTheo.Com and other super sites. But given the company’s incredible shrinking stock price, it is now beginning to worry about hostile takeovers too. Last year at this time, Spinneyhead (NASDAQ: SPH) was trading at $122.56. Today it closed at $22.60. The decline in share price reflects economic depression in the technology sector and previous labour disputes between Spinneyhead management and union leaders. Overall, Spinneyhead remains undervalued but analysts are hesitant to move from �hold� to �buy� until senior management comes up with a strong marketing and strategy plan capable of returning revenue into the share dividend.
On Thursday, Spinneyhead said it adopted a poison pill to prevent a hostile takeover and further degradation of itself share price. The plan will entitle shareholders to buy one unit of a share of Spinneyhead preferred stock for $250.00, should any single group or company accumulate 15% or more of Spinneyhead�s preferred stock. According to both the company and financial analysts, this was a pre-emptive measure created in response to the depressed stock price, and in no way a response to any takeover attempts.
“The Rights Plan was not adopted in response to any effort to acquire control of Spinneyhead,� the company statement said. Efforts to contact the Spinneyhead CEO directly have not been successful.