Ramco-Gershenson considers alternatives, adopts rights plan

By Lisa Kerner

Charlotte, N.C., March 25 - Ramco-Gershenson Properties Trust said it is reviewing strategic alternatives with the assistance of Merrill Lynch & Co.

Alternatives to be considered include financing and restructuring transactions, assets sales and strategic transactions with third parties, according to a Ramco-Gershenson news release.

The company said it has received indications of interest from third parties, including Equity One, Inc., regarding potential transactions.

As previously reported, Equity-One bought 1.79 million shares of Ramco-Gershenson between Feb. 3 and March 5 for an initial 9.63% stake in the company.

Rights plan

Ramco-Gershenson's board of trustees adopted a limited-duration shareholder rights plan to protect the company's stockholders during the review process.

Under the plan, Ramco-Gershenson said a dividend distribution of one preferred share purchase right will be made for each of the company's outstanding common shares.

The rights become exercisable if a person or group becomes, or launches a tender offer to become, the beneficial owner of 15% or more of the company's outstanding common shares, including derivative positions, with some exceptions.

Each right will entitle shareholders to buy one one-thousandth of a share of a new series of junior participating preferreds at a purchase price of $30, subject to adjustment.

According to Ramco-Gershenson, the distribution will be made on or after April 10 payable to shareholders of record as of the close of business on that date.

The rights plan will expire on March 25, 2010 unless extended.

Ramco-Gershenson is a real estate investment trust based in Farmington Hills, Mich.

© 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.