Mariner Energy has adopted a Rights Plan providing for a dividend distribution of one Right for each outstanding share of Mariner's common stock to holders of record at the close of business on October 23, 2008.
The Rights Plan would be triggered if an acquiring party accumulates 10% or more of Mariner's common stock and would entitle holders of the Rights to purchase stock of either Mariner or an acquiring entity at half of market value. Mariner would generally be entitled to redeem the Rights at $.001 per Right at any time until the tenth day following the time the Rights become exercisable. The Rights will expire on October 12, 2018.
Commenting on the Rights Plan, Scott D. Josey, Mariner's Chairman, Chief Executive Officer and President, said, "The adoption of the Rights Plan is not in response to any current accumulation of shares or takeover situation and is intended only as a general deterrent to potentially unfair or coercive takeover practices that could be employed, especially those exploiting market instability.
"In light of the current circumstances in the financial and securities markets, we believe the Rights Plan represents a sound and reasonable means of safeguarding the interests of Mariner's stockholders. The Rights Plan we have adopted is similar to plans that have been adopted by more than 1,800 other companies."
Details of the Rights Plan will be outlined in Mariner's Form 8-K to be filed with the Securities & Exchange Commission.
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