Youbet.com extends, modifies stock buyback plan

Online gambling companyYoubet.com Inc. said Wednesday it has extended and modified its stock buyback plan and adopted a shareholder rights plan, something companies typically use to prevent an unsolicited takeover.

Youbet said that under its shareholder rights plan, if anyone acquires 4.9 percent or more of its outstanding shares without board approval, their voting power will automatically diminish significantly.

Existing shareholders who already owned 4.9 percent or more of the company's shares Tuesday will only trigger this if they acquire more shares.

The company's chief executive, Michael Brodsky, said the rights plan "is not intended for defensive or anti-takeover purposes" and it's being used to preserve shareholder value.

Youbet.com (nasdaq: UBET - news - people ) also extended a share repurchase plan that was set to expire Tuesday. As part of the modified plan, Youbet is authorized to buy up to 10 percent of its outstanding shares as of March 31.

As of Dec. 31, the latest figures available from the Securities and Exchange Commission, the company had about 41.5 million outstanding shares.

Shares closed down a penny at $1.68.