United Natural Adopts Shareholder Rights Plan
DAYVILLE, Conn.--United Natural Foods adopted a Shareholder Rights Plan. The plan is designed to protect its shareholders if there is ever a proposed takeover or accumulation of its stock. The company said there is no known threat of takeover at this time; the plan was enacted as a general precaution, simply to protect the interests of its shareholders.
In the case of a person or group acquiring 15 percent or more of the company's common stock, individual shareholders have the right to receive that number of shares of the company having a market value equal to two times the Exercise Price, upon payment of Exercise Price, and if the rights have not been redeemed or exchanged. In addition, each right will entitle its holder to purchase that number of shares of common stock, at Exercise Price, from the acquiring company, that has a market value of equal to two times the Exercise Price.
The company itself, in the case of an acquisition of 15 percent or more of its common stock, may redeem the rights at $.01 per right at any time before the acquisition. It may also exchange all or part of its rights for common stock at the rate of one share per right.