Allscripts Healthcare Solutions Inc., a Chicago-based EHR, still reeling from poor first quarter earnings, an executive shake-up and sharp decline in its stock, has adopted a stockholder rights plan, commonly known as a "poison pill," which, the company says, aims to enable all stockholders to realize the long-term value of their investment in Allscripts and protect it “from unfair or coercive takeover attempts.”
Dennis Chookaszian, Chairman of the Board, said in a statement: "As the Board believes that our current share price does not adequately reflect the Company's long-term potential, we recently expanded our share repurchase program and have now adopted this Rights Plan to ensure that shareholder value is protected. We see the Rights Plan as a temporary measure that is consistent with our fiduciary duties."
The stock currently sits at $10.58 per share. After the earnings and executive shake-up announcement, it went from $16.02 per share down to $9.20, a 42.53 percent fall. Under the rights plan, the rights will be exercisable if a person or group, without Board approval, acquires 10 percent or more of Allscripts' common stock or announces a tender offer which would result in the ownership of 10 percent or more of Allscripts' common stock.
Many of Allscripts’ largest shareholders have called for CEO Glen Tullman to resign, according to a report from Reuters.