"Lufkin Industries Shareholder Rights Plan Will Expire and Not Be Renewed Friday May 5, 7:30 am ET
LUFKIN, Texas, May 5 /PRNewswire-FirstCall/ -- Lufkin Industries, Inc. (Nasdaq: LUFK - News) today announced that on May 3, 2006, the Board of Directors discussed and decided not to renew its shareholder rights plan, commonly referred to as a "poison pill." The shareholder rights plan and the related common stock purchase rights issued pursuant to the plan will expire by the terms of the plan at the close of business on May 31, 2006.
Lufkin Industries, Inc. sells and services oil field pumping units, power transmission products, foundry castings and highway trailers throughout the world. The Company has vertically integrated all vital technologies required to design, manufacture and market its products."
Here's a description of the Plan from the latest 10k:
"The Company has adopted a �Shareholder Rights Plan� (the �Plan�) designed to protect against unsolicited attempts to acquire control of the Company that the Board believes are not in the best interest of the shareholders. The Plan provides for the possible issuance of a dividend of one common stock purchase right for each outstanding share of common stock. Under certain conditions, each right may be exercised to purchase one share of common stock at an exercise price of $75, subject to adjustment. Under certain circumstances, the rights entitle holders to purchase the common stock of the Company or an acquiring company having a value of twice the exercise price of the rights. The rights would become exercisable, or transferable apart from the common stock, ten days after a person or group acquired 20% or more, or announced or made a tender offer for 30% or more, of the outstanding common stock. Under certain circumstances, all rights owned by an acquiring person would be null and void. The rights expire on May 31, 2006, and may be redeemed by the Company at any time prior to the occurrence of certain events at $.05 per right.
The Company is also authorized to issue 2,000,000 shares of preferred stock, the terms and conditions to be determined by the Board of Directors in creating any particular series. As of December 31, 2005, no shares of preferred stock had been issued."