Toll Brothers adopts shareholder rights plan to protect value of NOLs

By Lisa Kerner

Charlotte, N.C., June 18 - The board of directors of Toll Brothers, Inc. will ask shareholders to approve a shareholder rights plan at the company's next annual meeting.

Toll Brothers' board said it adopted a rights plan to help preserve the value of the company's net deferred tax assets by reducing the risk of limitation of net operating loss carryforwards and certain other tax benefits under Section 382 of the Internal Revenue Code.

The net deferred tax assets would be "substantially limited" in the event of an ownership change, a company news release said.

Toll Brothers declared a dividend of one right for each share of common stock outstanding as of the close of business on July 17.

The rights are triggered if any shareholder or group acquires beneficial ownership of 4.95% or more of the company's outstanding stock without board approval, with some exceptions.

According to Toll Brothers, the rights are set to expire on July 16, 2019.

Based in Horsham, Pa., Toll Brothers is a builder of luxury single-family home communities, residential golf communities and urban low-, mid- and high-rise communities.

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