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BB&T Corporation Message Board

  • rwmgn rwmgn Feb 13, 2004 11:43 AM Flag

    Shareholders Rights

    Someone please tell me what is behind the BB&T board's change in the termination date of shareholders rights.

    Thank you,

    RW

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • It's my understanding that a company initiating a "shareholder rights" "management insulation" plan has to disclose if it is in response to hostile actions by an acquirer. BBT didn't so there isn't one. Banks are kinda chummy and if there is a deal in the works, it is probably friendly. Hope not, I like BBT just the way it is.

    • Aw, don't rain on my parade...==;^)

    • "...conspiracy theorists...?"

      Not really.

      Thanks for the links. You gave me a lot of what I was seeking.

      Will an improved CGR make BBT more attractive to funds and institutional investors?
      As I posted some time back, I think that is key to increasing stock price.
      30% holding of float by funds and institutions is well below other banks.
      And the only reason to hope for a sale is, obviously, a pop in price.
      More demand for the stock would suffice as well.

    • Before the conspiracy theorists get to far out of control -- please refer to the following links.

      Also just use any search engine and look up corporate governance. A huge amount of information is out there. All companies that wish to be held by institutional investors are being rated whether they want to be or not.

      While BB&T may be up for sale (anything is for sale at the right price) the motive to change "shareholder rights" is not as clandestine as it may seem.

      http://www.nli-research.co.jp/eng/resea/econo/eco020613.pdf

      http://www.resourcesconnection.com/aboutus/newsroom/Archive2003/BusnFinanceMagaz
      ine_021003b.htm

    • "...shareholders rights."

      Typically a defensive ploy limiting amount of shares an "outsider" may accumulate, to keep entrenched insiders "inside." IMO
      I've scanned, very quickly, to be sure, earlier SEC filings, and haven't located the original submittal.

      An abrupt change "in response to new corporate governance initiatives recommended by corporate governance rating organizations" is intriguing, and...

      Now I'd like someone to tell me just what THAT'S all about.... An acceptable suitor???

      Creedodger, you old SCREAMER, IT MAY NOT BE TOO LATE TO GET BACK IN!!

      LOL

      Mike J

      • 1 Reply to mikejaquish
      • I am back in, but in CALL options.

        A shareholder Rights plan is to protect the shareholders if a Hostal takeover bid were to come in from somewhere. It spells out the rights of the shareholders.


        The Rights Plan, which is similar to plans adopted by more than 2,200 publicly-traded companies, is designed to deter coercive or unfair takeover tactics. The Rights Plan will assist the Company's Board of Directors in dealing with any future actions taken by hostile entities that attempt to deprive the Company and its stockholders of the opportunity to obtain the most attractive price for their shares

        Most companies that the stock price is way low add a Shareholder Rights plan to protect the shareholders,


        When BBT droped to 36 or so, I bought many call options for this type of set up. I thought this may happen.

        I also understatd that Allison and a few others do not have a simbatical not sure that is the right word but it has something to do with retiring.

        In other words they are looking for a buy out of BBT and do not expect to stay on very long after the buy out.

        Some of this is second hand info and other is just my thoughts.

        good luck to all.

        creedog

 
BBT
37.60-0.31(-0.82%)Jul 28 4:03 PMEDT

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