Summary
Danaher Corporation (DHR) filed an 8-K on June 1, 2016, to announce a temporary trading suspension, commonly known as a "blackout period," affecting its employee benefit plans. This blackout is a direct consequence of the upcoming separation of Fortive Corporation from Danaher, scheduled for July 2, 2016. During this period, participants in various Danaher savings and incentive plans will be unable to exercise certain rights related to their Danaher Stock Fund holdings. The blackout is specifically designed to comply with Section 306(a) of the Sarbanes-Oxley Act and Regulation BTR. This regulation restricts trading by directors and executive officers (Section 16 officers) when a significant portion of plan participants are similarly restricted. Consequently, Danaher's directors and Section 16 officers will be prohibited from buying, selling, or transferring Danaher common stock or related derivative securities during this blackout period, with limited exceptions.
Key Highlights
- 1Danaher Corporation is implementing a temporary trading suspension (blackout period) impacting employee benefit plans.
- 2The blackout is directly linked to the planned separation of Fortive Corporation from Danaher, expected on July 2, 2016.
- 3Participants in specific Danaher savings and incentive plans will face temporary restrictions on exercising rights within the Danaher Stock Fund.
- 4The blackout period is scheduled to commence around July 1, 2016, and last through July 9, 2016 (with slight variations for a Puerto Rico plan).
- 5This action is in compliance with Section 306(a) of the Sarbanes-Oxley Act and Regulation BTR.
- 6During the blackout, Danaher's directors and Section 16 officers are prohibited from trading Danaher common stock or related derivative securities, barring certain exemptions.