Arctic Cat Inc. Adopts New Shareholder Rights Plan; Replaces Similar Plan That Recently Expired.Business Editors THIEF RIVER The Thief River is a tributary of the Red Lake River in northwestern Minnesota in the United States. Via the Red Lake River, the Red River of the North, Lake Winnipeg and the Nelson River, it is part of the watershed of Hudson Bay. FALLS, Minn.--(BUSINESS WIRE)--Sept. 19, 2001 Arctic Cat Arctic Cat is a producer of all-terrain vehicles and snowmobiles in the United States. Located in Thief River Falls, Minnesota, they are a top competitor with other snowmobile companies such as Polaris, Ski-Doo by Bombardier, and Yamaha Motor Company Ltd.. Inc. (Nasdaq:ACAT ACAT See: Automated Customer Account Transfer ) today announced that its board of directors unanimously adopted a new shareholder rights plan to replace a similar plan that recently expired. The shareholder rights plan is designed to ensure that all of the company's shareholders receive fair and equal treatment in the event of any proposal to acquire the company. The board declared a distribution of one right for each share of common stock outstanding on October 2, 2001. Each right entitles the holder to purchase 1/100th of a share of a new series of Junior Participating Preferred Stock Participating Preferred Stock A type of preferred stock that, under certain conditions, gives holders the right to receive earnings payouts over and above the specified dividend rate. of Arctic Cat at an initial exercise price of $80. Initially, the rights will be attached to the common stock and will not be exercisable. They become exercisable only following the acquisition by a person or group, without the prior consent of the Arctic Cat board, of 15 percent or more of the company's voting stock Voting stock The shares in a corporation that entitle the shareholder to vote. voting stock Stock for which the holder has the right to vote in the election of directors, in the appointment of auditors, or in other matters brought up at the , or following the announcement of a tender offer or exchange offer to acquire an interest of 15 percent or more. Suzuki Motor Corporation holds approximately 31 percent of the company's voting stock and will not cause the rights to become exercisable unless it increases its holdings to more than 32 percent of the company's voting stock. In the event that the rights become exercisable, each right will entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: the holder to purchase, at the exercise price, common stock with a market value equal to twice the exercise price and, should the company be acquired, each right would entitle the holder to purchase, at the exercise price, common stock of the acquiring company with a market value equal to twice the exercise price. Rights owned by the acquiring person would become void. In certain specified instances, the rights may be redeemed by the company. If not redeemed, they would expire on September 17, 2011. "The company currently has no shareholder with an interest of 15 percent or more, other than Suzuki Motor Corporation, and we are not aware of any current attempt to take control of the company," said Christopher A. Twomey, president and chief executive officer of Arctic Cat. "The plan was adopted as a replacement to our prior plan after extensive consideration by the board and is intended to protect the interests of our shareholders in the event of abusive Tending to deceive; practicing abuse; prone to ill-treat by coarse, insulting words or harmful acts. Using ill treatment; injurious, improper, hurtful, offensive, reproachful. or unfair takeover tactics. It is not designed to prevent the acquisition of the company on terms beneficial to all shareholders." Details of the plan will be contained in a letter to be mailed to all shareholders. Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles all-ter·rain vehicle n. Abbr. ATV A small, open motor vehicle having one seat and three or more wheels fitted with large tires. It is designed chiefly for recreational use over roadless, rugged terrain. (ATVs) under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. For more information, please visit Arctic Cat's Web site at www.arctic-cat.com. |
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