What is the significance of the Stockholder Protection Rights Agreement expiring?

The expiration of the Stockholder Protection Rights Agreement means that a specific anti-takeover measure previously in place for Harris Corporation's common stock is no longer active. This could potentially make the company more susceptible to hostile takeover attempts in the future, although it does not imply any immediate change or threat.

Did shareholders receive any money or compensation when the rights expired?

No, the filing explicitly states that shareholders were not entitled to any payment as a result of the expiration of the Rights Agreement and the associated preferred share purchase rights.

What were these 'preferred share purchase rights'?

These rights were part of a poison pill strategy designed to deter hostile takeovers. They would have allowed shareholders (excluding the acquirer) to purchase additional shares of the company's stock at a significant discount under certain triggering events, thereby diluting the stake of a potential acquirer and making the takeover more expensive.

Does this expiration affect the value of my Harris Corporation stock?

The expiration of the rights agreement itself is not expected to have a direct, immediate impact on the stock's market value. However, it removes a defensive mechanism that could influence future strategic events, such as a takeover bid. The stock's value will continue to be driven by the company's financial performance, industry trends, and other market factors.

LHX 8-K: Shareholder Matters

Summary

This 8-K filing from Harris Corporation (now L3Harris Technologies) on December 7, 2006, reports the natural expiration of its Stockholder Protection Rights Agreement and the preferred share purchase rights issued under it. The agreement, originally dated December 6, 1996, expired by its own terms on December 5, 2006. This expiration means that the company's common stock no longer carries the right for shareholders to purchase a fraction of a share of Participating Preferred Stock under specific triggering events. Importantly, this expiration did not entitle shareholders to any form of payment or compensation. For investors, this marks the end of a specific anti-takeover provision that was in place.

Key Highlights

1Harris Corporation's Stockholder Protection Rights Agreement has expired as per its original terms.
2The expiration date of the Rights Agreement was December 5, 2006.
3The preferred share purchase rights issued under the agreement are no longer in effect.
4Common stock no longer comes with the right to purchase Participating Preferred Stock under specified conditions.
5The expiration of the Rights Agreement and associated rights did not result in any payment to shareholders.
6This filing signifies the removal of a specific shareholder rights plan that was designed to protect against hostile takeovers.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Rights Modification (Dec 8, 2006)

Summary

Key Highlights

Frequently Asked Questions