Knology Inc.’s board of directors has approved a stockholder-protection rights plan.
According to the operator, under the plan, a dividend of one right for each outstanding share of common stock will be distributed to stockholders of record at the close of business Aug. 10.
The rights will be exercisable only if a person or group acquires beneficial ownership of 18% or more of the company’s common stock or commences a tender or exchange offer to acquire 18% or more of Knology’s common stock.
The company added that the rights will not trade separately from the common stock unless and until they become exercisable, and its board may redeem the rights at any time prior to the time at which they became exercisable.
Unless earlier redeemed or exchanged by the board, the rights will expire July 27, 2015.