All American Semiconductor's Board Adopts Common Stock Purchase Rights Plan

June 19, 2000 by Jeff Shepard

All American Semiconductor Inc. (Miami, FL) announced that its board of directors has adopted a common stock purchase rights plan and declared a dividend distribution of one common stock purchase right on each outstanding share of the company's common stock.The company stated that the rights plan is similar to those adopted by many other public companies. The rights are designed to ensure that all shareholders of the company receive fair and equal treatment in the event of any proposed takeover of the company and to guard against partial tender offers, squeeze-outs, open market accumulations and other coercive or unfair tactics to gain control of the company which might provide inadequate value to shareholders. The plan is a precaution to protect the rights of All American shareholders.