08:19 AM EST, 01/28/2025 (MT Newswires) -- Beacon (BECN) said Tuesday that its board has approved a stockholder rights agreement designed to prioritize shareholder interests following a tender offer from QXO Inc. ( QXO ) .

The distributor of specialty building products said the agreement is designed to prevent any party from seizing control without offering a fair premium, while still allowing legitimate takeover proposals to move forward.

As part of the plan, Beacon said it will distribute one preferred share purchase right for each common share to shareholders of record on Feb. 7.

The rights will take effect if an unapproved entity acquires 15% or more of Beacon's shares, enabling other shareholders to buy additional shares at a 50% discount, according to the company.

Beacon reiterated that it previously rejected QXO's offer as undervaluing the company and will issue a formal recommendation within 10 business days.

BECN shares were 0.4% higher in recent premarket activity.