NORTHEAST SAVINGS <NSB> ADOPTS RIGHTS PLAN
Northeast Savings F.A. said its
board adopted a shareholder rights plan designed to protect the
company from coercive takeover tactics and bids not fair to all
sharholders.
    Under the plan, the board declared a dividend of one share
purchase right for each of the Northeast common shares held of
record as of November two, the company said.
    Initially, the rights are not exerciseable, rights
certificates are not distributed, and the rights automatically
trade with Northeast's shares, the company said.
    However, 20 days following the acquisition of 20 pct or
more of Northeast's common shares shares or 20 days following
the commencement of a tender offer for 30 pct or more of
Northeast's shares, the rights will become exerciseable and
separate rights certificates will be distributed, the company
said.
    The rights will entitle holders of Northeast's common
shares to purchase additional shares at an exercise price of 60
dlrs a share, the company said.
    The company said that in the event of certain triggering
events described in the rights plan, holders of the rights,
other than an acquiring person, will be entitled to acquire
Northeast's common shares having a market value of twice the
then-current exercise price of the rights. Also, in the event
Northeast enters into certain business combination
transactions, holders of the rights will be provided a right to
acquire equity securities of the acquiring entity having a
market value of twice the then-current exercise price of the
rights, the company said. Northeast said it will be entitled to
redeem the rights at one cent per right until the occurence of
certain events.
 Reuter
