The board of directors at Sprint Corp has approved a new shareholder rights plan that contains enhancements which it says better enable the board to act in the interests of shareholders in the event of a proposed takeover. The company insists the plan was not adopted in response to any specific threat to acquire control of Sprint, and says it is not aware of any. As part of the adoption of the new plan, existing rights will be redeemed and the new rights will be distributed as a dividend. The rights generally will be able to be exercised only if a person or group acquires 15% or more of Sprint’s common stock and Class A common stock or announces a tender or exchange offer that would result it owning 15 percent or more. Each new right will initially entitle the holder to purchase one one-thousandth of share of a new series of preferred stock at an exercise price of $225. The new rights are redeemable at a price of $0.01 per right and will expire on June 25, 2007.
