Poison Pill In Place at CKx

NEW YORK: CKx, the company that owns 19 Entertainment, has implemented a stockholder rights plan after receiving interest from an unnamed third party for the acquisition of a minority interest in the company.

According to CKx, the interested party is in discussions with Robert F.X. Sillerman, the company’s former chairman and CEO. If Sillerman were to throw his support behind the potential buyer and tender his shares, the unnamed third party would secure a majority stake of CKx. To prevent this from happening, CKx has adopted a stockholder rights plan to "protect stockholders from potentially coercive takeover tactics, and to provide fair and equal treatment for all stockholders." The board says it will, however, consider a fully financed offer for all of the company’s shares.

In May, Simon Fuller announced that he was leading a consortium of investors to bid for CKx, which bought 19 from him in 2005. In addition to Idol, CKx holds the rights to the name, image and likeness of Elvis Presley and the operations of Graceland, among other assets.