North Side Savings Bank has adopted a shareholder rights plan in response to a nearby bank's unfriendly acquisition of its stock.
Douglaston-based New York Bancorp purchased 7.84% of North Side's stock, and announced its intention to push for a merger. North Side officials said at the time that they would oppose any inappropriate stock accumulation not in shareholders' best interests.
Under the rights plan, which would take effect if any party acquired more than 10% of North Side's stock, each stockholder of record as of April 30 would receive one right per share, initially entitling them to buy one unit of a share of preferred stock for $100.
Once the plan is triggered, the shareholders of record could purchase common stock at about half price, thereby diluting the hostile acquirer's stake.