Cost Plus shareholder rights plan now in effect through 2013

By Lisa Kerner

Charlotte, N.C., June 25 - The board of directors of Cost Plus, Inc. approved the renewal of its preferred shares rights agreement through June 30, 2013.

The rights agreement had been scheduled to expire on Monday, according to a company news release.

Extending the agreement guards against the potential use of coercive takeover tactics, Cost Plus noted.

Initially, the preferred share purchase rights were distributed as a dividend on each Cost Plus common share outstanding on July 24, 1998 and currently trade with each outstanding Cost Plus common share.

Cost Plus said its board resolved to review annually whether or not to redeem the rights.

On June 16, it was reported that Cost Plus rejected Pier 1 Imports, Inc.'s unsolicited stock-for-stock merger proposal.

Pier 1, a Fort Worth, Texas, specialty retailer, said it would issue 0.6 shares of its common stock for each share of Cost Plus common stock, valued at about $4 per share based on the closing prices of Pier 1 and Cost Plus on June 6.

Cost Plus was asked by Pier 1 to terminate its shareholder rights plan and to refrain from renewing or extending the plan or adopting any other rights plan or poison pill.

Pier 1 estimates that its common shareholders own 62% of Cost Plus' outstanding shares, a prior news release said.

Cost Plus is a specialty retailer located in Oakland, Calif.

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