WASHINGTON (dpa-AFX) - Office Depot Inc. (ODP), a provider of office supplies and services, announced that effective October 24, 2012, its Board approved a Rights Agreement and declared a dividend distribution of one preferred stock purchase right for each outstanding share of Company Common Stock.
Each right initially represents the right to purchase 1/5,000th of a share of Company preferred stock at $11.50. Also, initially, these purchase rights will not be exercisable and will trade with the shares of the Company's Common Stock. The Rights Agreement will expire on October 23, 2013.
Office Depot noted that the rights will be exercisable if a person or a group, without Board approval, acquires 15% or more of the Company's Common Stock, each holder of a right will have the right to receive, upon exercise, shares of Company Common Stock having a value equal to two times the exercise price of the right.
Office Depot stated that the Rights Agreement is designed to protect all stockholders of the company against potential acquirers who may seek to take advantage of the company and its stockholders through coercive and unfair tactics aimed at gaining control of the Company without paying all stockholders a full and fair price.
The company said it intends to seek stockholder approval of the Rights Agreement.
Copyright RTT News/dpa-AFX
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