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EDUCATION ALTERNATIVES, INC. ADOPTS SHARE RIGHTS PLAN

 MINNEAPOLIS, Sept. 9 /PRNewswire/ -- The board of directors of Education Alternatives, Inc. (NASDAQ: EAIN), today approved a share rights plan designed to enable the board to protect the company's shareholders from certain undesirable takeover attempts that would deny them the long-term value of their investment.
 John T. Golle, chairman and chief executive officer, emphasized that the company has no knowledge that anyone is considering a takeover of the company. He said that the board nevertheless believes the plan is a prudent step. "The shareholder rights plan is intended to increase the likelihood that the company's shareholders will realize the long-term value of their investment in the company," Golle said.
 Under the plan:
 The company will distribute as a dividend one right for each
 share of the company's common stock outstanding on Oct. 1, 1993.
 Each right will entitle its holder to buy one one-hundredth of a
 share of a new series of junior participating preferred stock at an
 exercise price of $175, subject to adjustment. The rights expire on
 Oct. 1, 2003 (subject to extension) unless they are redeemed or
 exchanged prior to that date.
 The rights are exercisable only if a person or group acquires
 beneficial ownership of 20 percent or more of the company's
 outstanding common stock or announces a tender or exchange offer
 which, if completed, would result in that person or group
 beneficially owning 20 percent or more of the company's outstanding
 common stock.
 The company will be entitled to redeem the rights at $.01 per
 right, subject to adjustment, at any time prior to an acquisition by
 a person or group of 20 percent or more of the company's outstanding
 common stock and -- unless there has been a change in control of the
 company's board -- during the 20-day period thereafter (subject to
 possible extension).
 Following expiration of the redemption period, each right --
 except those held by a 20 percent shareholder or its affiliates or
 associates, which become void -- would become exercisable for the
 company's common stock having a market value equal to twice the
 right's exercise price (subject to possible adjustments) if a person
 or group has acquired beneficial ownership of 20 percent or more of
 the company's outstanding common stock.
 If the company is acquired in certain mergers or similar
 transactions after the rights become exercisable, each right that
 has not become void would become exercisable for common stock of the
 acquiring company, or its affiliate, having a market value of twice
 the right's exercise price.
 The last two provisions would not apply to certain tender or exchange offers which are approved by the board of directors prior to a change in control of the board or to certain mergers following such offers.
 In certain circumstances, the company may exchange the rights for shares of the company's common stock, delay or temporarily suspend the exercisability of the rights, or reduce the 20 percent stock ownership threshold to not less than 10 percent.
 A summary of the share rights plan will be distributed in October to all shareholders of record as of Oct. 1, 1993.
 Education Alternatives, Inc., provides management of public schools and consulting services to public and private schools.
 -0- 9/9/93
 /CONTACT: Frank L. Kuhar, chief financial officer of Education Alternatives, 612-832-0092/
 (EAIN)


CO: Education Alternatives, Inc. ST: Minnesota IN: SU: SRP

DS-DB -- MN006 -- 0147 09/09/93 09:04 EDT
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Publication:PR Newswire
Date:Sep 9, 1993
Words:560
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