Business
Enterprise Oilfield Group Adopts Shareholder Rights Plan
Enterprise Oilfield Group Adopts Shareholder Rights Plan
About this update from Enterprise Group, Inc.
[{"type":"text","content":"\nEnterprise Oilfield Group Adopts Shareholder Rights Plan\n\n\n May 6, 2009 (Baystreet.ca) -- ST. ALBERT, ALBERTA -- Enterprise Oilfield Group, Inc. (the \"Corporation\" or \"Enterprise\") (TSX:E) today announced that it has adopted a Shareholder Rights Plan (the \"Rights Plan\") effective immediately. The Rights Plan must be ratified by shareholders at Enterprise's annual and special meeting to be held on June 4, 2009, failing which it will cease to have effect. Upon ratification by Enterprise shareholders, the Rights Plan will continue in effect for an initial term of three years and is subject to reconfirmation by shareholders at the third annual meeting held after each confirmation.\n\nThe Rights Plan is designed both to encourage the fair and equal treatment of Enterprise's shareholders in connection with any potential take-over bid and to ensure that Enterprise's shareholders and its Board of Directors, in compliance with corporate and securities laws, have sufficient time to consider whether there are other options that would more effectively maximize shareholder value. The Rights Plan is not intended to deter take-over proposals. The terms of the Rights Plan are similar to those in rights plans recently approved by shareholders of other Canadian corporations. Enterprise is not aware of any specific take-over bid for the Corporation in process or currently being contemplated. \nThe rights issued under the Rights Plan become exercisable when a person, together with any parties related to it, acquires or announces its intention to acquire, 20% or more of the Corporation's outstanding common shares without complying with the \"Permitted Bid\" provisions of the Rights Plan or without approval of Enterprise's Board of Directors. Should such an acquisition occur each right would entitle a holder, other than the acquiring person or persons related to it, to purchase common shares of Enterprise at a significant discount to the then current market price. A \"Permitted Bid\" is a bid made to all Enterprise shareholders that is open for at least 60 days. If at the end of the 60 day period more than 50% of Enterprise's then outstanding common shares, other than those common shares owned by the party making the bid and certain related persons, have been tendered to the bid, such party may take up and pay for the common shares but mus...