Independent power producer Calpine Corp., which owns plants in 21 states, said Monday that it planned to scrap its anti-takeover "poison pill" and eliminate the staggered election of its board members.
The San Jose-based company said its board unanimously agreed to amend its shareholder rights agreement -- the so-called poison pill -- to allow early termination by May 1. Calpine gave no other details on the move, and officials at the company were not immediately available for comment.
Its board also adopted a resolution to eliminate the classification of its directors, meaning the election of each director would take place annually, rather than allowing longer, uncontested terms.
The resolution will be put to a vote at the company's shareholder meeting May 25, Calpine said.
A company uses a poison pill defense to block hostile takeover attempts.
"We believe these actions will provide stronger accountability and further align management's and stockholders' interests," said Calpine Chairman and Chief Executive Peter Cartwright.
Calpine, which also produces natural gas, has about 15% of its power-generating capacity in California, with two more plants set to start up before summer.
Shares of Calpine rose 5 cents to $3.31 on the New York Stock Exchange.
Reuters and Bloomberg News were used in compiling this report.