REICHHOLD CHEMICAL <RCI> SETS ANTI-TAKEOVER PLAN
Reichhold Chemical Inc said its
board adopted a warrant dividend plan in which one preferred
stock purchase right will be distributed as a dividend on each
common share outstanding.
    The company said its warrant dividend plan is designed to
protect its shareholders against unsolicted, coercive attempts
to aquire control without making an adequate offer for all
shares.
    Reichhold said the adoption is not a response to any
specific takeover attempt.
    Reichhold said each right will entitle shareholders to buy
one one-hundreth of a share of a newly created series of
preferred stock at an initial exercise price of 120 dlrs, with
dividend and voting rights approximately equal to those of one
share of the company's common stock.
    The rights will be exercisable only if, without Reichhold's
prior consent, a person or group a acquires 20 pct or more of
the voting power or announces a tender offer which would result
in 20 pct ownership, the company said.
    Reichhold said it is entitled to redeem the rights at five
cts apiece before a 20 pct position has been acquired, or
before an existing 20 pct shareholder buys an additional two
pct or more of the voting power of the company, or in
connection with certain transactions afterward.
    The tax-free distribution will become effective May 1,
1987, and will expire 10 years later, the company said.
    Details of the plan are outlined in a letter to be mailed
to stockholders.
 Reuter
