Evergreen Energy announces stockholder rights plan

By Lisa Kerner

Charlotte, N.C., Dec. 4 - Evergreen Energy Inc.'s board of directors adopted a stockholder rights plan that gives stockholders of record as of Dec. 19 the right to buy shares of a new series of preferred stock.

The plan allows Evergreen to "fully evaluate alternatives in the event of an unsolicited takeover bid."

In November, Evergreen Energy announced it would review strategic alternatives with the assistance of Houlihan Lokey. Alternatives could include the potential sale or joint venture of some assets.

"We are taking this step now in part because we believe Evergreen's shares are priced well below any reasonable valuation of our assets and long-term prospects," Evergreen president and chief executive officer Kevin R. Collins said in a company news release.

"In addition, the plan preserves the company's option to remain independent and pursue its long-term business plan," added Collins.

Evergreen Energy said the rights will be triggered only if a person or group acquires or announces a tender offer for 15% or more of Evergreen's common stock.

Each holder of a right, other than the acquirer, would be entitled to receive, upon payment of the purchase price which is initially set at $4.00 per right, a number of shares of Evergreen common stock having a value equal to two times such purchase price, the release said.

The rights to purchase the new preferred stock series are set to expire on Dec. 19, 2018.

Evergreen Energy, a Denver-based coal refinery, does not intend to comment further until it has approved a course of action.

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