Wet Seal Anti-Takeover Plan
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IRVINE — Wet Seal Inc.’s board has adopted a so-called poison-pill plan to help fend off any hostile takeover bids.
The company said, however, that it is not aware of any such bid.
Under the anti-takeover plan, shareholders of the women’s specialty apparel retailer will receive a dividend distribution of one right for each share of Wet Seal common stock. The rights, to holders of record Aug. 29, can be exercised if an acquiring party accumulates 12% or more of Wet Seal’s voting stock, or if a party announces an offer to acquire 20% or more of Wet Seal’s voting stock.
The company said the rights will expire Aug. 29, 2007.
Two anti-takeover measures were defeated earlier this year. Company officials mistakenly thought they needed just 50% of the total votes cast to gain approval for the defensive measures, when in fact they needed 50% of all outstanding shares.
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