United Rentals last week announced that its board of directors has amended the company's Shareholder Rights Plan to reduce the triggering threshold under the plan to 15 percent from its previous level of 25 percent. As a result of the amendment, and subject to certain exceptions, the rights will be triggered if a person or group acquires beneficial ownership of 15 percent or more of the company's common shares.
Any current holder of more than 15 percent of the company's common stock will not trigger the rights, however, unless it subsequently acquires an additional .001 percent of the company's common shares.
The reduction of the company's unusually high triggering threshold was adopted in light of the current volatile state of the equity market and the company’s current lower share price. The company did not otherwise amend the plan or extend its duration.
A copy of the amendment to the company's amended Shareholder Rights Plan was filed last week on a Form 8-K with the Securities and Exchange Commission.
Greenwich, Conn.-based United Rentals is No. 1 on the RER 100.