Allegheny Pennsylvania Stockholders' Rights Plan of Datascope Corp.

• Category: Corporations - Public - ReIncorporation
• State: Multi-State
• County: Allegheny
• Control #: US-CC-8-162B
• Format: Word; Rich Text

Description

This sample form, a detailed Stockholders' Rights Plan document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. The Allegheny Pennsylvania Stockholders' Rights Plan of Data scope Corp., also known as the "poison pill," is a defensive strategy implemented by the company to protect the interests of its stockholders from unwanted hostile takeovers. This plan aims to deter potential acquirers by making the acquisition financially unfavorable or unviable. Under this plan, Data scope Corp. distributed rights or options to its stockholders, known as "preferred stock purchase rights," which are attached to existing common shares. These rights are triggered when a hostile entity acquires a certain percentage of Data scope's outstanding shares, typically between 10% and 20%. Once triggered, stockholders are able to exercise their rights and purchase additional shares at a significant discount, effectively diluting the acquirer's stake and making the takeover more costly. By implementing the Allegheny Pennsylvania Stockholders' Rights Plan, Data scope Corp. aims to protect stockholders and ensure they have the opportunity to receive a fair value for their shares during any potential hostile takeover attempt. It allows stockholders to maintain control over the company's strategic decisions and avoid abrupt changes in management or corporate direction that may not be in their best interest. There are several versions or types of stockholders' rights plans that may be utilized by companies like Data scope Corp. These include: 1. Flip-In Rights Plan: This type of rights plan allows existing shareholders (excluding the acquiring entity) to purchase shares of the acquiring company's stock at a discounted price, rather than the target company's stock. This increases the cost for the acquiring entity and potentially dilutes their ownership stake. 2. Flip-Over Rights Plan: In contrast to the Flip-In plan, the Flip-Over plan allows existing shareholders to purchase shares of the target company's stock (after the takeover) at a discounted price. Shareholders receive a higher value if the target company is acquired and their shares are converted to the acquiring company's stock. 3. Partial or Modified Rights Plan: Companies may also opt for a partial or modified version of the stockholders' rights plan, tailored to their specific needs and circumstances. These plans may have different thresholds for triggering the rights, varied discount rates, or alternative provisions to suit the company's objectives. In summary, the Allegheny Pennsylvania Stockholders' Rights Plan of Data scope Corp. is a defensive measure aimed at protecting stockholders from hostile takeovers and ensuring they receive a fair value for their shares. Various types and versions of stockholders' rights plans exist, including the Flip-In, Flip-Over, and partial or modified plans, each with unique provisions designed to safeguard the interests of stockholders.

The Allegheny Pennsylvania Stockholders' Rights Plan of Data scope Corp., also known as the "poison pill," is a defensive strategy implemented by the company to protect the interests of its stockholders from unwanted hostile takeovers. This plan aims to deter potential acquirers by making the acquisition financially unfavorable or unviable. Under this plan, Data scope Corp. distributed rights or options to its stockholders, known as "preferred stock purchase rights," which are attached to existing common shares. These rights are triggered when a hostile entity acquires a certain percentage of Data scope's outstanding shares, typically between 10% and 20%. Once triggered, stockholders are able to exercise their rights and purchase additional shares at a significant discount, effectively diluting the acquirer's stake and making the takeover more costly. By implementing the Allegheny Pennsylvania Stockholders' Rights Plan, Data scope Corp. aims to protect stockholders and ensure they have the opportunity to receive a fair value for their shares during any potential hostile takeover attempt. It allows stockholders to maintain control over the company's strategic decisions and avoid abrupt changes in management or corporate direction that may not be in their best interest. There are several versions or types of stockholders' rights plans that may be utilized by companies like Data scope Corp. These include: 1. Flip-In Rights Plan: This type of rights plan allows existing shareholders (excluding the acquiring entity) to purchase shares of the acquiring company's stock at a discounted price, rather than the target company's stock. This increases the cost for the acquiring entity and potentially dilutes their ownership stake. 2. Flip-Over Rights Plan: In contrast to the Flip-In plan, the Flip-Over plan allows existing shareholders to purchase shares of the target company's stock (after the takeover) at a discounted price. Shareholders receive a higher value if the target company is acquired and their shares are converted to the acquiring company's stock. 3. Partial or Modified Rights Plan: Companies may also opt for a partial or modified version of the stockholders' rights plan, tailored to their specific needs and circumstances. These plans may have different thresholds for triggering the rights, varied discount rates, or alternative provisions to suit the company's objectives. In summary, the Allegheny Pennsylvania Stockholders' Rights Plan of Data scope Corp. is a defensive measure aimed at protecting stockholders from hostile takeovers and ensuring they receive a fair value for their shares. Various types and versions of stockholders' rights plans exist, including the Flip-In, Flip-Over, and partial or modified plans, each with unique provisions designed to safeguard the interests of stockholders.