CRAZY EDDIE <CRZY> SETS DEFENSIVE RIGHTS
Crazy Eddie Inc said its board has
adopted a defensive shareholder rights plan and said it has
received "friendly inquiries" on its acquisition.
    It said under the plan, shareholdrs of record as of April
21 will receive a right to purchase under certain circumstances
at a price of 42 dlrs 0.01 preferred share for each common
share held.  The rights will expire April Nine.
    The company said the rights would be exercisable 20
business days after a party were to acquire 20 pct or more of
Crazy Eddie common stock or announce a tender or exchange offer
that would result in ownership of 30 pct or more.
    Crazy Eddie said if a party owning 20 pct or more of its
stock were to merge into it or if a party were to acquire 40
pct or more of Crazy Eddie stock, right holders other than the
acquiring party would be entitled to acquire common shares or
other securities or assets with a market value equal to twice
the rights' exercise price.
    If after a party acquired 20 pct or more of its stock Crazy
Eddie were acquired or 50 pct of its earnings power or assets
sold, rightholders other than the acquirer would be entitled to
buy shares of the acquirer's common stock worth twice the
rights' exercise price, the company said.
    Crazy Eddie said if a party were to acquire 30 pct or more
of its common stock and then fail to acquire Crazy Eddie within
180 days thereafter, rightholders would be entitled to exchange
their Crazy Eddie common stock for subordinated notes of Crazy
Eddie maturing either one year or, above a certain dollar limt,
five years after issuance.
    Crazy Eddie said adoption of the plan is not in response to
any known effort to acquire control of it.  But the company
said it has become aware of some "possible accumulations" of
its stock has has received some "friendly inquiries."
 Reuter
