Queens County Bancorp has adopted a shareholder rights plan which would be triggered if any person or group of people acquires at least 10% of the New York City thrift company's stock.
Under the plan, the board issued one right per share for each of its outstanding shares.
Ten days after the plan is triggered, each right will allow shareholders to buy $240 worth of Queens County common stock for a total price of $120. The rights of the acquirer, however, will become void. That will dilute the value of the acquirer's holdings.
The board may also choose to exchange each right for one share of common stock or 0.01 share of preferred stock if any person buys between 10% and 50% of the shares.
And if the Flushing-based company is completely purchased or sells more than 50% of its assets after someone takes control of the board, the rights will also permit shareholders to buy $240 worth of the acquirer's common stock, for the same $120 price.
The board may also redeem the rights for a price of one penny per right before the plan is activated.
The rights will be issued to shareholders as of Jan. 30 and will expire Jan. 16, 2006.