NEW YORK (Thomson Financial) - CSK Auto Corp. said Monday it has adopted a
shareholder rights plan in order to maintain the integrity of the strategic
review process that the company is currently conducting.
Under the rights plan, one right will be issued for each outstanding share.
The plan will expire Feb. 3, unless extended by the company's shareholders, in
which case it will expire on February 4, 2011.
The rights won't be exercisable unless they're triggered by someone
announcing their intention to buy 10% of the company's stock, or by 50% or more
of the company's assets are being sold.
CSK previously announced that its board, with the assistance from JPMorgan,
has commenced a process in which more than 20 parties have been given access to
information about the company so that they can develop strategic alternatives
for the boards consideration.
The company also announced Friday that O'Reilly Automative Inc. had made an
unsolicited offer to buy all outstanding shares of CSK for a total of $845
million.
Shares of CSK closed Friday at $8.98.
Ryan Vlastelica
rv/vj
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