Dril-Quip announces stockholder rights plan

By Lisa Kerner

Charlotte, N.C., Nov. 25 - Dril-Quip, Inc.'s board of directors adopted a stockholder rights plan that provides for a dividend distribution of one right for each outstanding share of common stock to holders of record at the close of business on Dec. 5.

According to Dril-Quip, the plan is designed to protect its stockholders from coercive or unfair takeover techniques.

The plan would be triggered if an acquiring party accumulates 15% or more of Dril-Quip's common stock.

Holders of the rights would then be entitled to purchase either shares of the company's stock or shares in an acquiring entity at half of market value, a Dril-Quip news release said.

The rights will expire on Nov. 24, 2018.

Dril-Quip, a Houston-based drilling products company, said the plan was adopted "because of stock market instability and not in response to any current accumulation of shares or takeover situation."

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