Dow Jones July 22,1997
Red Brick Adopts Holder Rights Plan with 15% trigger
Los Gatos,Calif(Dow Jones)-Red Brick Systems Inc.'s(REDB) board
adopted a shareholer rights plan that would become exercisable if a holder acquires more than 15% of the companys common shares or declares a tender offer.
The plan is effective immediately.
In a press release Monday , the company said the board declared a dividend distribution, payable on Aug 25, of one preferred shared purchase right on each outstanding common share for Red Brick shareholders of record on that date.
The rights will expire on July 20, 2007.
Redbrick said the implementation of the rights plan is not in response to any known effort to acquire control of the company.
The company said the rights to purchase preferred shares will not become exercisable, and will continue to trade with the common shares, unless the shareholder rights plan is triggered, Each right entitles the holder to purchase a one-thousandth of a share of the company's newly-created series A junior participating preferred stock at an exercise price of $65 per one one-thousandth of a share.
In the event that the plan is triggered, each holder of a right-other than the acquiring person or group- will be entitled to receive, upon payment of the exercise price , that number of common shares having a market value equal to twice the exercise price.
In addition, if Red Brick is acquired in a merger or other business transaction, each right will entitle its holder to purchase, at the right's then-current exercise price, a number of the acquiring company's common shares having a market value of twice that price. The rights may be redeemed for one-tenth of a cent per right at the option of the board prior to such an aquisition, the company said. |
