The company says the rights plan is designed to deter coercive takeover tactics and to prevent a person or another company from gaining control of Asarco without offering a fair price to all shareholders. The rights will expire Aug 7, 1999.
Each right entitles a registered holder to purchase common stock equal in value to two times the exercise price of the right.
Chairman Richard de J. Osborne said the plan is not intended to prevent an offer considered favorable and fair to shareholders. “The plan is designed to deal with the serious problem of unilateral actions by hostile acquirers that are calculated to deprive a company’s board and its shareholders of their ability to determine the destiny of the company,” he said.
The rights plan would kick in following announcement of a bid to purchase 15% or more of Asarco’s outstanding common shares. MIM Holdings, which owns 24.6% of Asarco’s outstanding common shares, would trigger the rights plan should it decide to increase its interest to more than 331/3% in Asarco.
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