ProPetro (NYSE:PUMP) says its board has approved a shareholder rights plan to guard against a potential takeover of the company amid the sharp drop in oil prices and oilfield service activity.
ProPetro says the rights plan is similar to plans
adopted by other publicly held companies; in general, rights can be
exercised only if a person or group acquires beneficial ownership of 10%
(or 20% in the case of certain passive investors) or more of the
company's outstanding common shares, or announces a tender or exchange
offer that would result in such ownership.
Billionaire investor Dan Wilks recently acquired a 10% stake in the company, potentially with an eye toward a deal.
No comments:
Post a Comment