By Adriano Marchese

Currency Exchange International has adopted a shareholder-rights plan to be triggered in the case of a hostile-takeover bid.

The foreign-exchange technology and processing-services company said Monday that under the rights plan, each share will receive one right that is to remain dormant until an unfriendly bidder buys 20% or more of the company's stock.

At that point, the rights held by every other shareholder are triggered, allowing the other shareholders to buy new shares in the company at a steep discount.

The rights plan is being adopted to help ensure that all shareholders of the company are treated fairly and equally in the event of any unsolicited takeover bid or other acquisition of control of the company, Currency Exchange said.

The company noted that the poison pill is designed to stop only hostile bids, not all bids. If a hostile bid does appear, the poison-pill plan gives the board time to identify, solicit and develop potential alternatives, it said.

A permitted bid would have to be made to all shareholders, kept open for 105 days and then approved by a majority of the independent shareholders, the company said.

Currency Exchange noted that the rights plan isn't being adopted in response to any buyout attempts, but that it made the decision in what it says are the best interests of the company.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 27, 2025 08:11 ET (12:11 GMT)

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