If a person or group acquires 12% (or 20% in the case of a 13G Institutional Investor) or more of Forest Laboratories’ outstanding common stock, each Right will entitle its holder (other than such person or members of such group) to purchase, at the Right’s then-current exercise price, a number of Forest Laboratories’ common shares having a market value of twice such price. In addition, if Forest Laboratories is acquired in a merger or other business combination transaction after a person has acquired in excess of the applicable percentage thresholds the Company’s outstanding common stock, each Right will entitle its holder to purchase, at the Right’s then-current exercise price, a number of the acquiring company’s common shares having a market value of twice such price. The acquiring person will not be entitled to exercise these Rights.Prior to the acquisition by a person or group of beneficial ownership of the Company’s common stock equal to or in excess of the applicable percentage thresholds, the Rights are redeemable for $.001 per Right at the option of the Board of Directors.
Forest Laboratories Adopts Stockholder Rights Plan And Declares Dividend Distribution Of Preferred Share Purchase Rights
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