DELTA WOODSIDE ADOPTS SHAREHOLDER-RIGHTS PLAN
NEW YORK — Citing the recent record low trading level of its stock, Delta Woodside Industries said Monday that it has adopted a shareholder rights plan and a stock buyback plan.
The shareholder rights plan, which is also known as a poison pill, is set to take effect if a person or group buys more than 20 percent of the Greenville, S.C.-based company’s stock.
In a statement, Delta said the stock purchase rights will be distributed as a dividend to its shareholders, calculated at a rate of one right for each share of common stock held as of Dec. 22.
The textile and apparel company also disclosed plans to repurchase up to five million shares, replacing an earlier plan under which it bought back 979,000 shares. Delta now has about 24 million shares outstanding.
Based on the firm’s stock closing price of 2 1/8, up 3/16 Monday on the New York Stock Exchange, the shares would be worth about $10.6 million.
Over the last 52 weeks, Delta’s stock has traded as high as 7 3/8 and as low as 1 7/16.
In October, Delta announced plans to spin off its two apparel operations to shareholders. By early 2000, Delta plans to spin off Duck Head Apparel Co., a maker of women’s and men’s branded apparel, and Delta Apparel Co., which makes T-shirts, to shareholders.
Delta Mills Marketing Co., the fabric operation, will continue to trade publicly, using the Delta Woodside corporate structure. The company last year completed its divestiture of non-apparel businesses and had sought a buyer for its apparel units and mill operations, but it was unable to find an interested party.