Interline Brands adopts shareholder rights plan

By Lisa Kerner

Charlotte, N.C., March 23 - The board of directors of Interline Brands, Inc. adopted a shareholder rights plan, it was announced on Monday.

According to Interline, the plan was not adopted in response to any known acquisition offers. However, the company believes its value is not reflected in its current market price and it may therefore be vulnerable to a takeover.

A dividend distribution of one preferred stock purchase right will be made for each outstanding share of Interline common stock. The distribution will be made on or after April 2 to stockholders of record as of the close of business on that date, an Interline news release said.

Interline said the rights are not exercisable unless an entity becomes, or launches a tender offer to become, the beneficial owner of 15% or more of the company's outstanding common stock.

Each right will entitle stockholders to buy one one-thousandth of a share of a new series of junior participating preferred stock at a purchase price of $30.

Interline, a Jacksonville, Fla., distributor and direct marketer of specialty maintenance, repair and operations products, said the rights will expire on March 22, 2012 unless they are redeemed, exchanged or terminated earlier.

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