Lydall says rights plan adopted to protect its shareholders

By Lisa Kerner

Charlotte, N.C., June 23 - Lydall Inc. said its board of directors adopted a shareholder rights plan to protect the company's shareholders in the event of an unsolicited business combination or similar transaction.

The plan does not prevent the board from considering or accepting an offer to acquire Lydall if it is in the company's and its shareholders' best interests, Lydall president and chief executive officer Dale Barnhart said in a company news release.

Lydall said it will issue a dividend of one right for each outstanding share of Lydall common stock held by shareholders of record as of the close of business on July 6.

Each right will initially entitle shareholders to purchase one one-thousandth of a share of Lydall's series A junior participating preferred stock, par value $1 per share, for $20 per one-thousandth of a share, subject to adjustment.

The rights are triggered when a person or group acquires or announces an exchange offer to acquire 15% or more of the company's common stock.

According to Lydall, the rights will expire on June 22, 2012 unless earlier redeemed or exchanged by the board.

Manchester, Conn.-based Lydall designs and manufactures specialty engineered products for the thermal/acoustical, filtration/separation and biopharmaceutical markets.

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