ALCO Stores adopts amended shareholder rights plan The ALCO board has announced that the company will amend its existing stockholder rights agreement. The amendment will increase the beneficial ownership threshold at which a person becomes an "Acquiring Person" from 15% to 20% of the company's common stock. The amendment will also increase stockholders' power to respond to a potential third-party offer to acquire the company. Specifically, if the company receives a "qualified" third-party offer to acquire the company that meets certain objective criteria, the record holders of 10% or more of the outstanding common stock will be able to require that a special meeting of stockholders be called to consider redeeming all Rights issued under the Rights Agreement. The board believes these actions are in the best interests of the company's stockholders and will enhance shareholder value and influence while retaining the Rights Agreement's protections that require any potential acquirer treat all stockholders fairly and equally. The company will mail a letter to each stockholder summarizing the changes to the Rights Agreement in detail. Interested parties should refer to that document for a full description of the terms of the amendments to the company's Rights Agreement.
ALCO Stores files Chapter 11 bankruptcy Alco Storesfiled for Chapter 11 bankruptcy in the U.S. bankruptcy court for the Northern District of Texas yesterday, according to filings published by the court.