SOUTH MILWAUKEE, Wis., Aug. 2, 2007 (PRIME NEWSWIRE) -- Bucyrus International, Inc. (Nasdaq:BUCY) announced today that its Board of Directors adopted a stockholder rights plan. The stockholder rights plan includes the declaration of a dividend of one preferred share purchase right on each outstanding share of the Company's Class A common stock. The issuance of the rights under the stockholder rights plan will be made on September 3, 2007 to stockholders of record as of the close of business on August 16, 2007.
The rights are designed to provide for fair and equal treatment for all stockholders in the event that an unsolicited attempt is made to acquire Bucyrus International, Inc. Bucyrus International, Inc. believes that the plan will help to protect stockholders against abusive takeover tactics that may be used to gain control of a company without paying a price that is in the best interest of all stockholders. The rights plan was not adopted in response to any known offers for Bucyrus International, Inc. and is similar to stockholder rights plans adopted by many other companies.
The rights will be exercisable only if a person or group (with certain exceptions) acquires 15% or more of the Company's common stock or announces a tender offer, consummation of which would result in ownership by the person or group of 15% or more of the common stock.
Each right will initially entitle stockholders to buy one one-hundredth of one share of a series of the Company's preferred stock at an initial exercise price of $200 per one one-hundredth share, subject to adjustment. With certain exceptions, if any person becomes a 15% or more stockholder of the Company, each right (subject to certain limitations) will entitle its holder to purchase, at the rights' then-current exercise price, a number of common shares of the Company or of the acquiror having a market value at the time of twice the right's full share exercise price.
Bucyrus International, Inc.'s Board of Directors may redeem the rights for $0.001 per right at any time prior to the acquisition by a person or group (with certain exceptions) of 15% or more of the Company's common stock. Unless the rights are redeemed, exchanged or terminated earlier, they will expire on August 2, 2017.
Additional details regarding the rights plan are contained in a Form 8-K to be filed by Bucyrus International, Inc. with the Securities and Exchange Commission and in a summary to be mailed to all stockholders following the record date.
About Bucyrus International, Inc.
Bucyrus International, Inc. is a world leader in the design and manufacture of high productivity mining equipment for the surface (BUCYRUS) and underground (DBT) mining industries. BUCYRUS equipment is used for mining coal, copper, iron ore, oil sands and other minerals and DBT equipment is used primarily for mining coal. In addition to machine manufacturing, Bucyrus and DBT manufacture high quality OE parts and provide world-class support services for their machines. Bucyrus International, Inc.'s headquarters is located in South Milwaukee, Wisconsin, USA.
Special Note Regarding Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of predictive, future tense or forward looking terminology, such as "believes," "anticipates," "expects," "estimates," "intends," "may," "will" or similar terms. We caution that any such forward-looking statements are not guarantees of our future performance and involve significant risks and uncertainties, and that actual results may differ materially from those contained in the forward-looking statements as a result of various factors, which are more fully described in our 2006 Form 10-K filed with the Securities and Exchange Commission on March 1, 2007, our prospectus supplement filed with the Securities and Exchange Commission on May 7, 2007 and our Form 10-Q filed on May 10, 2007.