The Toronto Stock Exchange is deferring consideration on whether to accept Crocodile Gold Corp.'s recently adopted poison pill so a securities commission can consider the matter.
On Monday the Canadian mining company adopted a shareholder rights plan in response to an unsolicited takeover bid, worth an estimated $173.7 million, that U.S. hedge fund Luxor Capital Group LP launched on Dec. 13.
Including warrants and stocks, Luxor already holds a roughly 20 percent stake in Crocodile Gold.
Crocodile Gold's poison pill expires on Feb. 29, 2012.
The Toronto Stock Exchange referred the matter to a securities commission, in keeping with the policy stated in its manual.
A spokeswoman for the exchange, Carolyn Quick, said, If a shareholder rights plan was triggered that TSX had not approved, the company would no longer be in compliance with our listing standards.
But Quick also said no shareholder rights plan has ever been triggered in Canada.
Crocodile said Wednesday that even though the exchange has deferred review of the poison pill it remains in effect.