Shares of San Diego-based Cubic Corp. jumped Monday after the company reported it is the target of a takeover attempt by a New York-based hedge fund.
Elliott Management, which targeted San Diego’s Sempra Energy in 2018, has acquired a 15% stake in Cubic and is seeking to buy the company.
Shares closed up 34% to almost $60 on NASDAQ and continued to rise in after-hours trading.
Cubic’s board said it believes that the company’s standalone prospects are excellent and announced a shareholders rights plan to fend off the unsolicited officer. The plan includes the ability to call a special shareholders meeting.
“The adoption of the rights plan is intended to provide the board with time to make informed decisions and prevent any third party from obtaining control of Cubic in a manner and at a price that are not in the best interests of Cubic’s shareholders,” said David F. Melcher, the lead independent director.
Cubic, which makes defense equipment and fare systems for public transit, is a $1.5 billion company founded in 1951 by Walter Zable.