Maternity apparel retailer Mothers Work renews ARSR contract
11 Oct '05
2 min read
Philadelphia based maternity apparel retailer Mothers Work Inc announced that it has entered into an Amended and Restated Rights Agreement (ARSR) to renew its Rights Agreement that would otherwise have expired on October 9, 2005.
The Amended and Restated Rights Agreement amends the Rights Agreement previously in effect in certain respects, including to extend the expiration date of the plan by 10 years, to October 9, 2015, to increase the threshold percentage of beneficial ownership that will trigger a distribution of the rights to 15 percent, from the 10 percent level previously in effect, and to change certain other provisions in order to address current law and practice in connection with rights plans.
The renewed plan is designed to ensure that the public shareholders receive fair treatment in the event of a potential takeover. The plan will not prevent a takeover, but should encourage any company seeking to acquire Mothers Work to negotiate with the Board of Directors prior to attempting a takeover. The Amended and Restated Stockholder Rights Agreement was not adopted in response to any specific effort to acquire control of Mothers Work.
The Amended and Restated Rights Agreement will be filed with the Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K.
Mothers Work is the leading designer, manufacturer, and marketer of maternity fashion in the US, as of July 31, 2005, Mothers Work operates 1,593 maternity locations, including 856 stores, predominantly under the tradenames Motherhood Maternity, A Pea in the Pod, Mimi Maternity, and Destination Maternity, and 737 leased departments, andsells on the web through its DestinationMaternity.com, maternitymall.com and brand-specific websites.
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