The Stride Rite Corporation's Board of Directors has adopted a new shareholder rights plan to replace its existing plan that was scheduled to expire in July 2007.
David M. Chamberlain, the Company's Chairman and CEO, stated, “We are pleased to announce that the new Plan raises the stock ownership threshold which triggers the Plan from 10% to 15% and contains a “TIDE” provision, which requires that independent directors of the Company to consider at least once every three years whether maintaining the rights plan continues to be in the best interests of shareholders. The Plan is designed to enhance the Board's ability to protect shareholder interests and to ensure that shareholders receive fair treatment in the event any coercive takeover attempt of Stride Rite is made in the future. The Plan is intended to provide the Board with sufficient time to consider any and all alternatives to such an action and is similar to plans adopted by many other publicly traded companies.”
