8-KOther Events

AVALONBAY COMMUNITIES INC 8-K Report (Jan 7, 2002)

Filed January 7, 2002For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) filed a Form 8-K on January 7, 2002, to report an amendment to its Shareholder Rights Agreement. Following a review by its Board of Directors, the company has amended the agreement to change the Final Expiration Date of the preferred stock purchase rights from March 9, 2008, to March 31, 2002. This amendment effectively means that the preferred stock purchase rights granted under the agreement will expire on March 31, 2002, rendering the Rights Agreement without further force or effect after that date. Investors should note this change as it signifies the termination of this specific shareholder protection mechanism. The filing also lists the relevant exhibits, including the original Rights Agreement and previous amendments, along with the new amendment dated January 4, 2002.

Key Highlights

  • 1Amendment to Shareholder Rights Agreement announced.
  • 2Final Expiration Date of preferred stock purchase rights changed from March 9, 2008, to March 31, 2002.
  • 3Rights Agreement will expire and be of no further force or effect after March 31, 2002.
  • 4The amendment was determined by the Board of Directors after a review following the 2001 Annual Meeting of Stockholders.
  • 5A copy of the amendment (Exhibit 4.3) is included with the filing.
  • 6This action signifies the termination of the existing shareholder rights plan.
  • 7Thomas J. Sargeant, Executive Vice President, Chief Financial Officer and Treasurer, signed the report.

Frequently Asked Questions

The main purpose of this 8-K filing is to report an amendment to AvalonBay Communities, Inc.'s Shareholder Rights Agreement. Specifically, the amendment changes the expiration date of the preferred stock purchase rights.

The Shareholder Rights Agreement, along with the preferred stock purchase rights it grants, will expire and cease to be effective after March 31, 2002.

The company's Board of Directors reviewed the Shareholder Rights Agreement after the 2001 Annual Meeting of Stockholders and determined to amend it to change the expiration date.

The expiration of the Shareholder Rights Agreement means that the preferred stock purchase rights, which are often put in place to protect against hostile takeovers, will no longer be in effect. This could potentially make the company more susceptible to such actions after March 31, 2002.