according to parkie Chet is holding this as his ace
Oromin Explorations Ltd.'s board of directors has adopted a shareholder rights plan. The objective of the plan is to ensure that all shareholders of Oromin are treated equally and fairly in connection with any takeover bid for Oromin. The plan is not intended to block takeover bids, but will discourage discriminatory or unfair takeover tactics, and provide the board of directors sufficient time to fully evaluate a takeover offer and pursue alternatives to maximize shareholder value. The plan is similar to many plans adopted by other Canadian companies. Oromin is not aware of any pending or threatened takeover bid for its shares.
In order to implement the plan, the board has authorized the issue, effective June 27, 2008, of one right in respect of each outstanding common share of Oromin. Until the occurrence of certain events, the rights will trade with the common shares and be represented by the certificates for the common shares.
On the occurrence of certain triggering events, including the acquisition by a person or group of 20 per cent or more of the outstanding common shares of Oromin in a transaction not approved by the directors, the rights will entitle holders (other than the acquiring person or group) to acquire shares of Oromin having a market value of $40 for $20, for example a 50-per-cent discount to the prevailing market price. The rights will not be triggered, however, by purchases of common shares of Oromin made under a permitted bid. A permitted bid is a takeover bid made for all shares to all holders of common shares of Oromin on identical terms, which also complies with certain other conditions, including a requirement that it remain open for at least 60 days.
Parkie says chet's hand is beatable