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HOUSTON (AP) -- Independent oil and gas producer Vaalco Energy Inc. said Friday its board of directors has authorized the repurchase of up to $20 million of the company's stock and has adopted a stockholder rights plan. Shares of the company's common stock will be purchased on the open market or through privately held negotiations during the next 12 months. Vaalco said it currently has 60.3 million shares outstanding. The stockholder rights plan entitles stockholders, under certain circumstances, to buy the company's stock at a 50 percent discount. The so-called "poison-pill" provision is designed to make it more costly and difficult for an unwanted suitor to make a hostile takeover bid. Under terms of the plan, shareholders of record as of Sept. 28 will be able to receive rights to buy fractional shares of a series of preferred stock at an exercise price of $20. Each fractional share will essentially be the economic equivalent of one share of common stock. Rights will be distributed as a dividend and will trade with the company's common stock. The rights will become exercisable if a person or group acquires 15 percent or more of the company's common stock. Shares of Vaalco Energy rose 1 penny to close at $4.21, and gained 14 cents to $4.35 in aftermarket trading.
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