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Microcap & Penny Stocks : Cade Industries -- Ignore unavailable to you. Want to Upgrade?

To: Upstock who wrote (3099)	8/7/1998 3:42:00 PM
From: Bald Eagle	Read Replies (2) \| Respond to of 3563

I don't see any connection, but could this plan be the reason we are down today in an up market? The plan looks like the management of Cade think that they are a takeover candidate, which would be bullish to me. Confused again!

To: Upstock who wrote (3099)	8/7/1998 5:00:00 PM
From: David K.	Read Replies (1) \| Respond to of 3563

How about this: The intention of the rights plan is to deter a takeover or merger that would not "fairly" value cade's business. Institutions are exempt from the plan (They can own more than 15% of the stock). If the takeover or merger meets "the requirements" of the board then the rights offer will essentially be converted into a small fee to be paid by the acquiring company. If there was a "hostile" takeover at $6, the right's plan would be triggered. For $15 a current shareholder could buy $30 worth of stock. He would now would own 6 shares of stock, which would be worth $36. The acquiring company would be paying a 71% premium on 85% of the stock. This premium would certainly discourage an unfriendly takeover.