From biz.yahoo.com :
Monday December 22, 6:45 pm Eastern Time
Company Press Release
SOURCE: Cannondale Corporation
Cannondale Corporation Adopts Rights Plan
BETHEL, Conn., Dec. 22 /PRNewswire/ -- Cannondale Corporation
(Nasdaq: BIKE - news) announced today that its Board of Directors has
adopted a Rights Plan in which Rights to purchase shares of Cannondale
Corporation Common Stock (the ''Common Stock'') will be distributed as
a dividend, one Right per share, to record owners of Common Stock as of
the close of business on December 22, 1997. The Rights Plan was not
adopted in response to any known offers for Cannondale Corporation.
Upon becoming exercisable, each Right entities holders to purchase a
certain amount of common stock. The Rights are not exercisable,
however, until a person or group acquires more than 20% of Common
Stock or announces a tender offer which would result in the ownership of
more than 20% of the Common Stock. Details of the Plan and the Rights
are outlined in a letter that is being mailed to all Cannondale stockholders.
In the letter to Cannondale stockholders, Joseph S. Montgomery,
Chairman and CEO of the corporation, stated that the Board of Directors
had adopted the plan to help assure that all stockholders would be treated
fairly in the event any party were to seek to acquire control of
Cannondale. Mr. Montgomery noted that rights plans, which have been
adopted by approximately 2,000 public companies, are a means of
protecting stockholders from the adverse effects of unfair or coercive
takeover tactics.
Cannondale Corporation is the world's leading manufacture of high-
performance aluminum bicycles. The Company's bicycles, wheelchairs
and bicycle accessories, which include clothing, packs and bags, HeadShok
suspension forks and CODA components, are marketed under the
Cannondale brand name and ''Handmade in USA'' logo, and are sold in
the U.S. and in more than 60 foreign countries.
SOURCE: Cannondale Corporation |
