Saks to distribute preferreds purchase rights

By Lisa Kerner

Charlotte, N.C., Nov. 26 - Saks Inc.'s board of directors will make a distribution of one preferred share purchase right on each outstanding share of Saks' common stock on Dec. 8 to shareholders of record as of Nov. 26, the company announced on Wednesday.

The rights, which expire Nov. 26, 2018, will be exercisable only if a person or group acquires 20% or more of Saks' common stock or begins a tender offer that would result in ownership by a person or group of 20% or more of the common stock, a Saks news release said.

According to Saks, each right will entitle shareholders to buy one one-hundredth of a share of a series C junior preferred stock at an exercise price of $50.

In the event of a merger or other business combination, right holders are entitled to purchase a number of an acquiring company's common shares.

Saks, a New York-based retailer, said its board is also authorized to reduce the 20% threshold to not less than 10%.

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