Arlington Tankers announces shareholder rights plan

By Lisa Kerner

Charlotte, N.C., June 26 - Arlington Tankers Ltd. said its board of directors adopted a shareholder rights plan.

The board, in connection with the rights plan, designated a new series of series A junior participating preference shares and declared a dividend of one right to buy one one-thousandth of a series A junior participating preference share for each outstanding common share of Arlington Tankers to shareholders of record as of July 7, a company news release stated.

Arlington Tankers said the rights initially will not be exercisable and will trade with its common shares.

The rights initially will become exercisable if a person becomes an acquiring person by acquiring 20% or more of Arlington Tankers' common shares, the release said.

It was noted that the rights will also become exercisable if a person begins a tender or exchange offer that could result in such person owning 20% or more of the company's common shares.

If a person becomes an acquiring person, each holder of a right other than the acquiring person would be entitled to purchase a number of common shares equivalent to the exercise price of the right divided by one-half of the current market price of a common share, according to Arlington Tankers.

Should the company be acquired in a merger, each holder of a right would then be entitled to purchase a number of common shares of the acquiring company's common shares equivalent to the exercise price of the right divided by one-half of the current market price of such common share.

Arlington Tankers added that prior to any acquisition by a person of beneficial ownership of 20% or more of the company's common shares, the rights are redeemable for $0.00001 per right at the option of the board.

Adopting the shareholder rights plan will allow Arlington Tankers to proceed with its previously announced strategic review process in an orderly manner, according to chief executive officer, president and chief financial officer Edward Terino.

Arlington Tankers is a Hamilton, Bermuda, seaborne transportation company.

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