Houston Wire & Cable announces adoption of shareholder rights plan

By Lisa Kerner

Charlotte, N.C., May 18 - Houston Wire & Cable Co. said its board of directors adopted a stockholder rights plan "to protect the company and its stockholders from unsolicited attempts or inequitable offers to acquire the company."

The plan was not adopted in response to any known offers, the company said in a news release.

According to Houston Wire, the plan does not affect the board's ability to accept a fair offer to acquire the company in a negotiated transaction.

Houston Wire declared a dividend distribution of one preferred stock purchase right for each outstanding share of the company's common stock in order to implement the rights plan.

The distribution will be made on or after May 28 to stockholders of record as of that date.

Each right entitles the holder to buy one one-thousandth of a share of a new series of junior participating preferred stock at a purchase price of $40, subject to adjustment, Houston Wire said.

The rights will be triggered if a person or group becomes, or begins a tender offer to become, the beneficial owner of 20% or more of the company's outstanding common stock, subject to certain exceptions.

Once the rights are triggered, rights holders will be allowed to purchase Houston Wire common stock at a discount.

Shareholders will be asked to ratify the plan, which is set to expire on May 18, 2012, at the next annual meeting.

Houston Wire & Cable is a Houston-based distributor of specialty wire and cable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.