ABILENE, Kan., May 3, 2013 (GLOBE NEWSWIRE) -- ALCO Stores, Inc. (Nasdaq:ALCS), which specializes in providing a superior selection of essential products for everyday life in small-town America, today announced that its Board of Directors adopted a three-year rights agreement. The adoption of a rights agreement is designed to ensure that all shareholders are treated fairly and protect against an attempt to acquire control that does not provide full and fair value to all of the Company's shareholders. The Company adopted the rights agreement in response to a reported accumulation of its stock that the Board of Directors determined could materially and adversely affect the interests of all shareholders if the rights agreement were not implemented.
Royce Winsten, Chairman of the Board of Directors of ALCO, stated, "In light of the dislocation in the equity markets and a challenging economic environment, our Board of Directors adopted a three-year shareholder rights agreement to protect the interests of our shareholders and deter opportunistic tactics that could deprive our shareholders from realizing full and fair value of their investment. The rights agreement should not interfere with a change of control transaction that is in the best interests of the Company and its shareholders because our Board of Directors can redeem the rights before a change in control event."
The rights agreement does not in any way weaken the Company's financial strength or interfere with its business plans. The issuance of the rights has no dilutive effect and will not affect reported earnings per share. It is not taxable to the Company or its shareholders and will not change the way that the Company's shares are traded.In implementing the rights agreement, the Company will distribute one right for each share of the Company's common stock held by shareholders of record as of the close of business on May 13, 2013. Initially, these rights will not be exercisable and will trade with the shares of the Company's common stock. The rights will expire on May 3, 2016, unless earlier redeemed, exchanged or amended by the Company.