Arctic Oil & Gas Directory: Nabors to implement shareholder rights plan

Nabors Industries Ltd. said July 17 that its board of directors has adopted a shareholder rights plan under which shareholders will receive rights to purchase shares of a new series of preferred stock. The rights will expire on July 16, 2013, unless extended or earlier redeemed or exchanged by Nabors pursuant to the terms of the plan. Further details about the plan will be contained in a current report on Form 8-K to be filed by the company with the Securities and Exchange Commission.

As previously announced, the company has responded to shareholder requests by declassifying its board of directors and adopting a director-resignation policy for directors failing to obtain a majority of votes cast in an uncontested election. The plan adopted by the board is designed to ensure the fair and equal treatment of the company’s shareholders in connection with any initiative to acquire effective control of the company. It is intended to reduce the likelihood that any person or group would gain control of Nabors by open market accumulation or otherwise without paying a control premium for all common shares. Because the rights may be redeemed by the board under certain circumstances, they will not prevent the board from considering any transaction that is determined by the board to be fair, advisable and in the best interests of all the company’s shareholders.