What is a Stockholder Rights Agreement?

A Stockholder Rights Agreement, often referred to as a 'poison pill,' is a defensive strategy used by a company to prevent or deter hostile takeover attempts. It typically involves issuing new shares or warrants to existing shareholders at a significant discount, making it more expensive for an acquiring entity to gain control.

What does this mean for my Xcel Energy shares?

As a shareholder of record on June 28, 2001, you will receive one 'Right' for each common share you own. These Rights are not immediately exercisable and are primarily a defensive measure designed to protect the company from hostile takeovers. They do not represent an immediate change in your ownership stake or financial benefit, but they could become valuable or trigger actions if a hostile takeover bid materializes.

When will I receive these Rights?

The Rights will be distributed to shareholders of record as of June 28, 2001. The exact method of distribution (e.g., separate certificate, automatic credit) is not detailed in this filing but is typically outlined in the Rights Agreement itself.

Is this agreement a sign of financial trouble or a pending sale?

Typically, a Stockholder Rights Agreement is a proactive measure to protect against unsolicited takeovers, not necessarily a sign of immediate financial distress or an impending sale. It is a standard corporate governance tool.

XEL/XELLL 8-K SEC Disclosure

Summary

Xcel Energy Inc. (XEL) announced on June 14, 2001, that it has officially implemented its previously announced Stockholder Rights Agreement, effective June 5, 2001. This action follows the receipt of an order from the Securities and Exchange Commission (SEC) authorizing the agreement under the Public Utility Holding Company Act of 1935. The company will distribute one Right for each outstanding common share to shareholders of record as of June 28, 2001. This Stockholder Rights Agreement, also known as a 'poison pill,' is typically implemented to deter hostile takeovers. While the details of the agreement are contained in a December 13, 2000 filing, the current report confirms its active status and the upcoming distribution of these Rights to shareholders. Investors should note that this is a protective measure and does not immediately alter the company's financial position or operational performance, but it is designed to safeguard shareholder value against unsolicited acquisition attempts.

Key Highlights

1Xcel Energy Inc. has officially implemented its Stockholder Rights Agreement.
2The Securities and Exchange Commission (SEC) has authorized the agreement under the Public Utility Holding Company Act of 1935.
3Shareholders of record as of June 28, 2001, will receive one Right for each common share.
4The Rights Agreement was originally dated December 13, 2000.
5The implementation is intended to protect the company from hostile takeovers.
6This is a procedural update confirming the activation of a previously disclosed agreement.

XCEL ENERGY INC 8-K Report (Jun 14, 2001)

Summary

Key Highlights

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