This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hutchinson Technology Adopts Replacement Share Rights Plan

HUTCHINSON, Minn., July 29, 2010 (GLOBE NEWSWIRE) -- The Board of Directors of Hutchinson Technology Incorporated (Nasdaq:HTCH) approved a share rights plan today that will replace an existing plan when it expires on August 10, 2010. Like the existing plan, the new share rights plan is intended to increase the likelihood that shareholders of Hutchinson Technology will realize the long-term value of their investment and that all shareholders will receive fair and equal treatment for all of their shares in the event of a takeover of the company. The new share rights plan was not adopted in response to any current takeover approach.

Under the plan, the Board of Directors has declared a dividend distribution of one common share purchase right on each outstanding share of common stock of Hutchinson Technology held by shareholders of record as of the close of business on August 10, 2010. The rights will expire on August 10, 2020.

Each right will entitle shareholders of Hutchinson Technology to buy one-tenth of a share of common stock of the company at an exercise price of $3.00 (subject to adjustment). Under both the expiring plan and the new plan, the rights generally will become exercisable after any person or group acquires beneficial ownership of 15 percent or more of the company's common stock. In that event, each right will entitle its holder (other than the 15-percent shareholder or group and related persons) to purchase, at an adjusted exercise price equal to ten times the previous exercise price, shares of the company's common stock having a value of twice the right's adjusted exercise price.

In addition, if Hutchinson Technology is acquired in a merger or other business-combination transaction, or sells 50 percent or more of its assets or earning power, each right generally will entitle its holder to purchase, at the right's adjusted exercise price, common shares of the acquiring company having a market value of twice the right's adjusted exercise price.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HTCH $3.72 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs