Louisville, Ky. - Tricon Global Restaurants Inc., owner of the Pizza Hut, Kentucky Fried Chicken(KFC) and Taco Bell brands, said its board of directors had adopted a shareholder rights plan.
Adopted to prevent hostile takeovers though accumulating shares on the open market or private transactions, the plan will distribute rights as a dividend at the rate of one right for each share of common stock, without par value of the company.
The rights plan applies to shareholders of record as of the close of business on August 3.
The plan was also designed to prevent an acquirer from gaining control of the company without offering a fair price to all shareholders. The rights will expire on July 21, 2008.
Each Right will initially entitle shareholders to buy one unit of a share of a series of preferred stock for $130.
The rights will be exercisable only if a person or group acquires 15% or more of common stock, or 20% or more if such person or group, presently owns more than 10% of the company's common stock.
The rights will also be excercisable if a group or person begins a tender or exchange offer upon expiration of which such person or group would beneficially own 15% or more, or 20% or more of the company's common stock.
The plan will be filed shortly with the Securities and Exchange Commission.
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