Collectors Universe announces stockholders rights plan

By Lisa Kerner

Charlotte, N.C., Jan. 13 - Collectors Universe, Inc.'s board of directors adopted a stockholders rights plan to provide the company with adequate time to pursue its strategic plan and to evaluate alternatives if a takeover attempt is made.

The limited-duration stockholder rights plan will end in January 2010 but could be extended for an additional two years with stockholder approval, Collectors Universe said.

"We continue to be optimistic regarding the company's long-term prospects which we believe are not adequately reflected in the current trading price of our stock," chief executive officer Michael Haynes said in a company news release.

"The plan is not intended to and will not prevent an acquisition of the company which is determined to be advantageous to the stockholders," Haynes added.

Collectors Universe's board, in connection with the plan, declared a non-taxable distribution of rights to purchase shares of a new series of preferred stock to all stockholders of record as of Jan. 23.

The rights will be triggered if anyone becomes the beneficial owner of 20% or more of Collectors Universe's outstanding shares or begins a tender or exchange offer for the company's shares.

Then each right - other than those held by that 20% or more beneficial owner or the party holding the tender offer - will entitle its holder to purchase, at the exercise price of the right, a number of the Santa Ana, Calif., collectibles company's shares having a market value of twice the right's exercise price, Collectors Universe said.

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