IDG adopts stockholder rights plan

By Staff -- Industrial Distribution, 11/1/2000

Atlanta, Ga.-Industrial Distribution Group adopted a stockholder rights plan, which is intended to provide the board with negotiating leverage in dealing with any potential acquirer.

The plan is intended to ensure that, in the event of an acquisition or takeover, all of the company's stockholders receive fair treatment.

Patrick O'Keefe, IDG's president and CEO, said, "the board believes our common stock price is well below, and does not sufficiently reflect, the long-term value of the company. Therefore, as we continue to improve our operating performance, we believe that enhancing the board's ability to represent the interests of all its stockholders is particularly important."

The actionable event would be the public announcement of the purchase of 20 percent of IDG's stock, 10 days after which the rights become exercisable.