Strategic Hotels & Resorts Extends Stockholder Rights Plan
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Strategic Hotels & Resorts Extends Stockholder Rights Plan
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Category: Worldwide - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2009-11-26
Strategic Hotels & Resorts, Inc. (NYSE: BEE) today announced that its Board of Directors extended the expiration date of its stockholder rights plan on the same terms as the company's existing rights plan. The rights plan was initially adopted in November 2008 with a term of a single year and was set to expire on November 30, 2009. Following the amendment, the rights plan will continue in effect until November 30, 2012, unless the rights issued thereunder are earlier redeemed or amended by the Board of Directors. No other substantive changes were made to the rights plan.
"The Board of Directors undertook a careful review of our rights plan in consultation with our outside advisors. In light of the significant dislocation in the equity markets and a challenging economic environment, particularly in the lodging sector, we concluded that the rights plan provides important benefits that protect the interests of our stockholders and deters opportunistic tactics that could deprive our stockholders from realizing full and fair value of their investment. As a result, we did not think it was prudent to have the rights plan expire at this time and took action to maintain this protection for our stockholders," stated William A. Prezant, Chairman of the Board of Directors of Strategic.
The amendment to the rights plan was effective as of the close of business on November 24, 2009. The rights plan as originally adopted was attached as an exhibit to a Form 8-K filed by Strategic with the Securities and Exchange Commission on November 19, 2008. The full text of the amendment to the stockholder rights plan will be filed by Strategic with the Securities and Exchange Commission on a Form 8-K.
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