Meridian Insurance Group, Inc. Adopts Shareholder Rights Plan.INDIANAPOLIS--(BUSINESS WIRE)--Sept. 18, 1998--Meridian Insurance Group, Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MIGI) announced today that its Board of Directors has adopted a Shareholder Rights Plan. Under the Plan, rights will be distributed at the rate of one right for each common share of the Company held by shareholders of record as of the close of business on September 28, 1998. Initially, 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: shareholders to buy one one-thousandth of a share of 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 purchase price of $75.00. The rights generally will be exercisable only if a person or group acquires 20 percent or more of the Company's common shares or commences a tender or exchange offer which, upon consummation, would result in a person or group owning 20 percent or more of the Company's common shares. In that event, the rights not owned by such person or group will be exercisable for stock having a value of twice the purchase price or, at the Company's option, may be exchanged for an equal number of common shares of the Company. The rights generally may be redeemed at a price of one-half cent per right and will expire on September 18, 2008. The Plan is similar to plans adopted by over 2,400 corporations throughout the country. It is intended to provide the Board of Directors with greater flexibility in responding to developments affecting control of the Company in a manner that is in the best interests of the Company and its shareholders. President and Chief Executive Officer Norma J. Oman said, "The adoption of the Plan will ensure the Company's shareholders are protected from abusive takeover tactics, such as creeping tender offers Creeping tender offer The process by which a group attempting to circumvent certain provisions of the Williams Act gradually acquires shares of a target company in the open market. or market accumulations, where shareholders may not receive their fair share of the long term value of the Company." The Plan will be filed with the Securities and Exchange Commission and will, together with a summary, be available from the Company upon the request of any shareholder. Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. Insurance Group, Inc., provides automobile, homeowners, farmowners, other personal lines of coverage, and commercial insurance. Meridian's insurance coverage is written in Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , Ohio, Pennsylvania, South Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). , Tennessee, Washington, and Wisconsin. |
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