Intermec action may lure buyers

EVERETT — Intermec Inc. has dropped a “poison pill” provision, making the company more attractive to potential buyers.

The Everett-based maker of inventory tracking technology indicated in a Securities and Exchange Commission filing that the 10-year-old provision had expired.

The company decided not to renew it, said Kevin McCarty, Intermec’s director of investor relations. Nothing more than that, he said. “In today’s world, most poison pills are not viewed favorably by a good percentage of institutional investors. Therefore, we let ours lapse,” McCarty said in an e-mail.

But many shareholders and analysts may read more into Intermec’s decision to allow the poison-pill language to lapse.

Generally, a poison pill is designed to make an unwanted takeover of a company enormously expensive by letting all shareholders, except for the hostile suitor, buy an enormous number of newly issued shares at a discounted price. The new shares dilute the hostile suitor’s stake, increasing its cost of buying the company.

While many companies over the years have adopted such provisions, few have used them, even when being bought out.

Buyout rumors about Intermec began growing strength after Motorola acquired the company’s biggest rival, Symbol Technologies, at the start of this year.

McCarty reiterated, however, that nothing should be read into the timing of decision to let Intermec’s poison pill go away.

With about 700 local employees and more than 2,300 worldwide, Intermec is the largest public company based in Snohomish County.

Sales of its mobile computers, barcode scanners and printers and related technology totaled $873 million last year, generating a net income of about $35 million. Patrick Byrne, formerly of Agilent Technologies, recently took over as chief executive officer.

Intermec’s shares on the New York Stock Exchange closed Thursday at $26.45, up 35 cents.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.