Flow International adopts rights agreement to replace expiring plan

By Lisa Kerner

Charlotte, N.C., Aug. 31 - Flow International Corp. entered into a rights agreement that replaces its existing preferred share rights purchase plan, which has been effective since 1990.

The latest rights agreement becomes effective Sept. 1, the same date the 1990 plan expires, according to a form 8-K filed with the Securities and Exchange Commission.

Flow International's board of directors declared a dividend of one common share purchase right for each outstanding share of common stock payable on Sept. 1 in connection with the plan.

Each right entitles the holder to buy one share of Flow International from the company for $18.

The rights are triggered if a person or group acquires or begins a tender offer to acquire beneficial ownership of 15% or more of Flow International's common stock, the filing said.

Owners of more than 15% of the company's outstanding shares will not be considered acquiring persons under the rights agreement unless they acquire beneficial ownership of additional shares after Sept. 1.

The rights expire on Sept. 1, 2019.

Mellon Investor Services LLC is the rights agent.

Flow International is a Kent, Wash.-based developer and manufacturer of ultrahigh-pressure waterjet and abrasive waterjet cutting and machining technology.

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