BETHESDA, Md.--(BUSINESS WIRE)--April 24, 2001--USEC Inc. (NYSE:USU) today announced its Board of Directors has adopted a Shareholder Rights Plan. The plan is designed to maximize the value of the Company for its shareholders in the event of any unsolicited attempt to acquire the Company.
USEC Chairman James R. Mellor said, "We are adopting a Shareholder Rights Plan that is similar to plans adopted by many other companies, including a majority of S&P 500 companies. The rights are designed to preserve the Board's bargaining power and flexibility and will not impede the Board's ability to act on transactions that are determined to be in the best interest of shareholders. The adoption of the plan is not being done in response to any known effort to acquire the Company."
Under the plan, one right will be distributed as a dividend for each share of common stock of the Company held by shareholders of record as of the close of business on May 9, 2001. The rights will expire on May 9, 2011.
The rights generally will be exercisable only if a person or group acquires beneficial ownership of 15 percent or more of the Company's common stock or commences a tender or exchange offer upon consummation of which such person or group would beneficially own 15 percent or more of the Company's common stock. Once exercised, each right will entitle shareholders to buy shares of common stock at a 50 percent discount to the market. Shareholders need take no action to receive these rights.
Issuance of the rights does not in any way affect the finances of the Company or impact its operations. The dividend is not taxable to the Company or its shareholders and does not change the manner in which the Company's shares may be traded.
A copy of the Shareholder Rights Plan will be filed shortly with the Securities and Exchange Commission and will be available on the USEC website, www.usec.com.
USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.
USEC Internet Site: www.usec.com
--30--KMK/ph*
| CONTACT: | USEC Inc. |
|---|---|
| Ron Seeholzer, 301/564-3225 | |
| Steve Wingfield, 301/564-3354 | |