josephzhang2...@gmail.com wrote:
> This plan is designed to protect the company from being taken over.
> However, the 5 us dollars exec price is so high that also means the
> individual shareholders's rights was ignored and the share price will
> never go up to 5 dollars.

> Dafei wrote:
> > Can someone explain what this means? Thnx.

> > Vimicro Corporation Logo. (PRNewsFoto/VIMICRO CORPORATION)

> > BEIJING CHINA

> > BEIJING, Dec. 12 /PRNewswire-Asia-FirstCall/ -- Vimicro International
> > Corporation (Nasdaq: VIMC) ("Vimicro" or the "Company"), a leading
> > fabless semiconductor company that designs and develops multimedia
> > semiconductor products and solutions, today announced that the Company
> > has adopted a shareholder rights plan. The rights plan is designed to
> > protect the best interests of the Company and its shareholders.

> > (Logo: http://www.newscom.com/cgi-bin/prnh/20070528/CNM014LOGO )

> > The Board of Directors authorized the execution of a rights agreement
> > and a distribution of one right for each outstanding ordinary share of
> > the Company at the closing of business on December 22, 2008. The
> > rights will be deemed attached to the certificates representing
> > outstanding ordinary shares, and no separate rights certificates will
> > be issued. The rights will become exercisable only if a person or
> > group obtains ownership of or announces a tender offer for 20% or more
> > of Vimicro's voting securities (including Vimicro's American
> > Depositary Shares representing ordinary shares). The shareholder
> > rights plan will continue to be in effect until December 12, 2018,
> > unless the plan is terminated by Vimicro or the rights are redeemed by
> > Vimicro before the plan expires. The rights are not being distributed
> > in response to any specific effort to acquire control of the Company.

> > About Vimicro International Corporation

> > Vimicro International Corporation is a worldwide leading fabless
> > semiconductor company that designs, develops and markets proprietary
> > embedded multimedia signal processing chips and solutions that enable
> > multimedia applications for mobile phones over 2.5G/3G networks and
> > PCs over broadband Internet. Vimicro's ADSs, each of which represents
> > four ordinary shares, are currently trading on the NASDAQ global
> > market under the ticker symbol "VIMC."

> >     For further information about Vimicro, please contact:

> >     Investor Contact:
> >      Emilie Deng
> >      Investor Relations Manager
> >      Tel:   +86-10-6894-8888 x7143
> >      Email: dengli...@vimicro.com
> >      Web:  http://www.vimicro.com

> >     Shelton Group
> >      Ryan Bright
> >      Tel:   +1-972-239-5119 x159
> >      Email: rbri...@sheltongroup.com