News Release about Maxx...
Hi Scott,
I just received this NR from Stockwatch.... Hmmm... wonder what to make of this...??
Shareholder rights plan
Maxx Petroleum Ltd MXP
Shares issued 53,821,630 Oct 9 close $2.90
Fri 10 Oct 97 News Release
Mr Burl Aycock reports
The cmopany has adopted a shareholder rights protection plan designed to
encourage the fair treatment of shareholders in connection with any take
over offer for the company. The rights plan addresses the company's
concerns that the board of directors and the shareholders have sufficient
time to properly consider any take over bid, and for the board of directors
to seek alternatives to such a bid.
The company is not aware of any pending or threatened offer for the
company. Although the rights plan took effect immediately upon its adoption
by the board of directors, shareholders will be asked to confirm the rights
plan at the next annual meeting. The rights plan is similar to plans
adopted by other Canadian companies.
Until the occurrence of certain specified events, the rights will trade
with the common shares and be represented by the share certificates for the
common shares.
The rights become exercisable only when a person acquires or announces the
intention to acquire 20% or more of the company's outstanding shares
without complying with the permitted bid provisions of the rights plan or
without approval of the board of directors. Should such an acquisition
occur, each right entitles a rights holder, other than the acquiring person
and related persons, to purchase shares of the company at a 50% discount to
the market price at the time.
Under the rights plan, a permitted bid is a bid made for all of the
company's common shares to all shareholders that is open for not less than
60 days. If at the end of 60 days at least 50% of the outstanding shares,
other than those owned by the offeror, have been tendered, the offeror may
take up and pay for the shares but must extend the bid for a further 10
days to allow all other shareholders to tender.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
