CARPINTERIA, Calif. — CKE Restaurants Inc. has announced that its board of directors has approved the adoption of a one-year stockholder rights plan, which will expire Dec. 31, 2009. Under the plan, all stockholders of record as of the close of business on Jan. 7, 2009, will receive a distribution of rights to purchase shares of a newly authorized series of preferred stock. The rights become exercisable in the event that a tender offer for at least 15 percent of CKE's common stock is announced, or an acquirer purchases at least 15 percent of the shares of CKE's common stock.
"Our board of directors has adopted the plan to help protect the long-term interests of the company's stockholders," said Byron Allumbaugh, chairman. "While the plan will not prohibit the acquisition of the company, it establishes certain rights to ensure that should any unsolicited acquisition occur, it would be on terms that maximize value and are equitable to all stockholders."
The rights will be distributed to stockholders as of the close of business Jan. 7, the record date, as a non-taxable distribution. There will be no rights certificates issued unless certain conditions are met. The rights are not currently exercisable and will initially trade with CKE's common stock. Additional details regarding the plan will be outlined in a summary to be mailed to the stockholders as of the record date.
According to Market Watch, CKE's stock price opened today at $8.97 on the New York Stock Exchange. The company's stock experienced a high for the year Sept. 9 at $14.45, and a low of $4.88 on Nov. 21.
