Casual Male announces rights plan

By Lisa Kerner

Charlotte, N.C., Dec. 9 - Casual Male Retail Group, Inc.'s board of directors adopted a rights plan in which a dividend distribution of one preferred stock purchase right will be made for each outstanding share of the company's common stock.

The rights become exercisable when an entity becomes, or launches a tender offer to become, the beneficial owner of 15% or more of the Canton, Mass., specialty retailer's outstanding common stock, a Casual Male news release said.

Existing stockholders who already own at least 15% of the company's outstanding common stock will trigger the exercise of the rights if they purchase additional shares after Dec. 8.

Once the rights become exercisable, stockholders can purchase for each share of common stock owned $5 worth of Casual Male shares having a market value of twice such price.

The plan also allows for the purchase of Casual Male common stock if the company is acquired.

Each right entitles stockholders to buy one one-thousandth of a share of a new series of junior participating preferred stock at a purchase price of $5, according to Casual Male.

The distribution will be made on or after Dec. 19 to stockholders of record as of that date.

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