Aetna Adopts New Shareholder Rights Plan.HARTFORD, Conn.--(BUSINESS WIRE)--Sept. 24, 1999-- The Board of Directors of Aetna Inc. (NYSE NYSE See: New York Stock Exchange :AET AET Aetna, Inc. AET After Extra Time AET Actual Evapotranspiration AET Alliance for Environmental Technology AET Alpha-Ethyltryptamine AET Applied Extrusion Technologies, Inc. ) today adopted a new shareholder rights plan, designed to replace the existing shareholder rights plan that was originally adopted in 1989 and is set to expire on November 8, 1999. While functioning substantially the same as the previous plan, the newly adopted shareholder rights plan contains certain shareholder-friendly provisions. The new plan removes a provision whereby the Board of Directors had the authority to reduce the triggering ownership level to 10 percent. In addition, the 1999 plan also provides for independent directors to review the rights plan at least once every three years and recommend to the Board whether the plan should be continued or amended. The Company said that the new shareholder rights plan is designed to enhance the Board's ability to respond to actions by hostile acquirors and to seek to maximize shareholder value in the event of an unsolicited takeover attempt Noun 1. takeover attempt - an attempt to take control of a corporation bear hug - a takeover bid so attractive that the directors of the target company must approve it or risk shareholder protest . The Company also noted that the Board has not adopted the new rights plan in response to any known effort to acquire control of the company. The new rights plan provides for the automatic distribution of one right for each outstanding share of Aetna common stock to shareholders of record as of close of business on November 8, 1999. No certificates will be issued. Instead, the rights will be issued automatically, and will trade automatically with every share of Aetna common stock. The rights are not exercisable until at least 10 days after specific triggering events Triggering Event A certain milestone or event that a participant in a qualified plan must experience in order to be eligible to receive a distribution from a qualified plan. occur. After a triggering event, including a person acquiring 15 percent or more of Aetna's common stock, the rights provide shareholders (excluding the acquiring person) the ability to purchase 1/100th of a share of Class B Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. at a price of $300. Under certain circumstances the rights are automatically transformed into the right for shareholders (excluding the acquiring person) to purchase Aetna common stock at a 50 percent discount to market value. Aetna is a leading provider of health and retirement benefits plans and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. with three core businesses: Aetna U.S. Healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. , Aetna Financial Services and Aetna International. The company provides nearly 40 million people worldwide with quality products, services and information that help them manage best what matters most: their health and financial well-being. |
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