Copart, Inc. Adopts Shareholder Rights Plan.Business Editors FAIRFIELD, Calif.--(BUSINESS WIRE)--March 7, 2003 Copart, Inc. (Nasdaq:CPRT CPRT Copart Inc. (stock symbol) CPRT Citizens for Personal Rapid Transit CPRT Client Perceived Response Time CPRT Coprocessor Register Transfer CPRT Cancer Prevention Research Trust CPRT Classic Professional Racquetball Tour ) today announced that its board of directors has adopted a Shareholder Rights Plan. Under the plan, Copart will issue a dividend of one right for each share of its common stock held by shareholders of record as of the close of business on Friday, March 21, 2003. The shareholder rights plan is designed to guard against partial tender offers and other coercive co·er·cive adj. Characterized by or inclined to coercion. co·er  cive·ly adv. tactics to gain control of Copart without offering a fair and adequate price and terms to all of Copart's shareholders. The plan was not adopted in response to any efforts to acquire Copart, and Copart is not aware of any such efforts. Each right will initially 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: shareholders to purchase a fractional share Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. of the company's 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. for $34.43. The rights are not immediately exercisable, however, and will become exercisable only upon the occurrence of certain events. If a person or group acquires, or announces a tender or exchange offer that would result in the acquisition of, 15% or more of Copart's common stock while the shareholder rights plan remains in place, then, unless the rights are redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. by Copart for $0.001 per right, the rights will become exercisable by all rights holders except the acquiring person (or the acquiring person's group) for either shares of Copart or shares of the third party acquiror, in either case having a value of twice the right's then-current exercise price. Further details of the plan are outlined in a letter that will be mailed to shareholders as of the record date. About Copart Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage salvage, in maritime law, the compensation that the owner must pay for having his vessel or cargo saved from peril, such as shipwreck, fire, or capture by an enemy. Salvage is awarded only when the party making the rescue was under no legal obligation to do so. vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company operates 101 facilities in 40 states. It also provides services in other locations through its national network of independent salvage vehicle processors. |
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