-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E5WsVoAhhgZttpGBRH6OscIM8CCZyD9GyL9DVUf3i3LvDaU1+S8PAWX+0UYjJyR1 OgR5RG/860qnPPb7Cn/2vA== 0000318819-99-000003.txt : 19990302 0000318819-99-000003.hdr.sgml : 19990302 ACCESSION NUMBER: 0000318819-99-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990302 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN WATER WORKS CO INC CENTRAL INDEX KEY: 0000318819 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] IRS NUMBER: 510063696 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03437 FILM NUMBER: 99554082 BUSINESS ADDRESS: STREET 1: 1025 LAUREL OAK RD CITY: VOORHEES STATE: NJ ZIP: 08043 BUSINESS PHONE: 6093468200 MAIL ADDRESS: STREET 1: 1025 LAUREL OAK ROAD CITY: VOORHEES STATE: NJ ZIP: 08043 8-K 1 EXHIBIT INDEX ON PAGE 7 =========================================================================== SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 DATE OF REPORT (Date of earliest event reported) March 2, 1999 ------------- AMERICAN WATER WORKS COMPANY, INC. ------------------------------------------------------- (Exact name of registrant as specified in its charter.) DELAWARE 51-0063696 - ----------------------- ------------------------------------ (State or jurisdiction (IRS Employer Identification Number) of incorporation) 1-3437-2 ------------------------ (Commission File Number) 1025 Laurel Oak Road, P.O. Box 1770, Voorhees, New Jersey 08043 ---------------------------------------------------------------- (Address of Principal Executive Offices - Zip Code) (609) 346-8200 ---------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable -------------- (Former name and former address, if changed since last report.) =========================================================================== ITEM 5. OTHER EVENTS Adoption of Rights Agreement The Board of Directors of American Water Works Company, Inc. (the "Company") has declared a dividend distribution of one common stock purchase right (the "Rights") for each outstanding share of common stock (the "Common Shares") of the Company, par value $1.25 per share, to shareholders of record at the close of business on March 2, 1999 (the "Record Date"). Each Right entitles the registered holder to purchase from the Company one Common Share at a purchase price of $150.00, subject to adjustment (the "Purchase Price"). The description and terms of the Rights are set forth in a Rights Agreement (the "Rights Agreement") between the Company and BankBoston, N.A., the Rights Agent. Capitalized terms used but not otherwise defined herein shall have the meaning given such terms in the Rights Agreement. Initially, the Rights will be evidenced by the certificates representing Common Shares then outstanding, no separate Right Certificates will be distributed and the Rights will not be tradeable separately from the Common Shares. The Rights will become exercisable and will separate from the Common Shares upon the earlier of (i) ten calendar days after a public announcement that a person or group of affiliated or associated persons (an "Acquiring Person") has acquired beneficial ownership of 25% or more of the outstanding Common Shares (the "Shares Acquisition Date") or (ii) ten business days (or a later date as determined by the Board of Directors or, if there has been an Adverse Change of Control, by a majority of the Continuing Directors (as such terms are herein defined)) after the commencement of, or first public announcement of, an intention to commence, a tender offer or exchange offer that would result in a person or group beneficially owning 25% or more of the outstanding Common Shares (the earlier of such dates being called the "Distribution Date"). Until the Distribution Date, (i) the Rights will be evidenced by the Common Share certificates and will be transferred with and only with such Common Share certificates, (ii) new Common Share certificates issued after the Record Date will contain, in accordance with the Rights Agreement, a notation incorporating the Rights Agreement by reference, and (iii) the surrender for transfer of any certificates for Common Shares outstanding will also constitute the transfer of the Rights associated with the Common Shares represented by such certificate. 1 The Rights are not exercisable until the Distribution Date and will expire at the close of business on March 2, 2009, unless earlier redeemed or exchanged by the Company as described below. As soon as practicable after the Distribution Date, Right Certificates will be mailed to holders of record of the Common Shares as of the close of business on the Distribution Date, and thereafter, the separate Right Certificates alone will represent the Rights. Except as otherwise provided by the Rights Agreement or determined by the Board of Directors, only Common Shares issued prior to the Distribution Date will be issued with Rights. In the event that a person or a group of affiliated or associated persons becomes the beneficial owner of 35% or more of the Common Shares, each holder of a Right will thereafter have the right to receive, upon exercise, Common Shares (or in certain circumstances, cash, property or other securities of the Company) having a value equal to two times the Purchase Price of the Right. Notwithstanding any of the foregoing, following the occurrence of any of the events set forth in this paragraph, all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring Person will be null and void. In the event that (i) the Company consolidates, or merges with, any other person, and the Company is not the surviving corporation, (ii) any person engages in a share exchange, consolidation or merger with the Company where the outstanding Common Shares of the Company are exchanged for securities, cash or property of the other person and the Company is the surviving corporation, or (iii) 50% or more of the Company's assets or earning power is sold or transferred, proper provision will be made so that each holder of a Right will thereafter have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two times the Purchase Price of the Right. The events set forth in this paragraph and the preceding paragraph are referred to as the "Triggering Events." The Purchase Price payable and the number of Common Shares or other securities, cash or property issuable, upon exercise of the Rights are subject to customary adjustments from time to time to prevent dilution in the event of certain changes in the shares of the Company. With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments amount to an increase or decrease of at least 1% in the Purchase Price. The Company may determine not to issue fractional Rights or shares, and in lieu thereof, an adjustment in cash will be made based on the market value of the Rights or shares on the last trading date prior to the date of exercise. 2 In general, the Company may redeem the Rights in whole, but not in part, at a price of $.0005 per Right, at any time before the earlier of the close of business on the tenth calendar day following the Shares Acquisition Date or the close of business on the Expiration Date. Immediately upon the action of the Board of Directors ordering redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the redemption price. At any time after any person becomes an Acquiring Person and prior to the acquisition by such person of 50% or more of the outstanding Common Shares, the Board of Directors of the Company may exchange the then outstanding and exercisable Rights (other than Rights owned by such person, which will have become void), in whole or in part, for Common Shares, each Right being exchangeable for one Common Share, subject to adjustment. Until a Right is exercised, the holder thereof, as such, will have no rights as a shareholder of the Company, including, without limitation, the right to vote or to receive dividends. Any of the provisions of the Rights Agreement may be amended by the Board of Directors of the Company prior to the earliest of (i) the Distribution Date, (ii) a Triggering Event or (iii) an Adverse Change of Control. After the earliest to occur of such events, the provisions of the Rights Agreement may be amended in order (x) to make changes that do not adversely affect the interests of holders of the Rights (other than the interests of any Acquiring Person), (y) to cure any ambiguity or correct or supplement any provision which may be defective or inconsistent with other provisions contained in the Rights Agreement, or (z) to shorten or lengthen any time period under the Rights Agreement, but no time period relating to redemption of the Rights may be lengthened so as to make the Rights redeemable at a time at which the Rights had not then otherwise been redeemable and no other time period may be lengthened unless for the purpose of protecting, enhancing or clarifying the rights or benefits of holders of the Rights. 3 A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A and is available to registered holders of the Rights upon written request free of charge from the Company. This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is incorporated herein by reference. 4 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) Not Applicable. (b) Not Applicable. (c) Exhibits. Exhibit No. Description 99.1 American Water Works Company, Inc. Press Release dated February 4, 1999, announcing the adoption of the Rights Agreement. 5 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN WATER WORKS COMPANY, INC. (Registrant) By: J. James Barr, President and CEO (Authorized Officer) Date: March 1, 1999 6 EXHIBIT INDEX Exhibit No. As provided in Item 601 Exhibit Number Description 99.1 American Water Works Company, Inc. Press Release dated February 4, 1999, announcing the adoption of the Rights Agreement. 7 EX-99 2 Exhibit 99.1 [LOGO] AMERICAN WATER WORKS COMPANY, INC. NEWS RELEASE FOR RELEASE: FOR IMMEDIATE RELEASE CONTACT: Thomas G. McKitrick Vice President Investor Relations (609) 346-8200 AMERICAN WATER WORKS COMPANY, INC. ADOPTS NEW SHAREHOLDER RIGHTS PLAN VOORHEES, NEW JERSEY - February 4, 1999 - American Water Works Company, Inc. (NYSE:AWK) announced today that its Board adopted a new Shareholder Rights Plan to replace the Rights Plan adopted 10 years ago which expires on March 2, 1999. Marilyn Ware, Chairman of the Board of American Water Works Company, said "the new Plan better reflects the Company's current common stock price and incorporates features commonly found in more recently adopted plans of this kind." Each Right under the new plan will entitle stockholders to buy one share of the Company's Common Stock at an exercise price of $150. Each Right will entitle its holder to purchase, at the Right's then-current exercise price, shares of American Water Works Common Stock, or a number of shares of an acquiring company's stock, which would have a market value of two times the exercise price, the Company said. The Rights become exercisable if there is a public announcement that a person or group acquires, or commences a tender offer to acquire, 25% or more of the outstanding shares of American Water Works. The Rights also become exercisable if American Water Works is acquired in a merger or a person or group acquires 35% or more of the outstanding shares of American Water Works. In certain circumstances, the Rights will be redeemable at the discretion of the Board. (MORE) 1025 Laurel Oak Road - P.O. Box 1770 - Voorhees, New Jersey 08043 - (609) 346-8201 - Fax (609) 346-8229 American Water Page 2 Shareholders do not need to take any action in connection with the redemption of Rights under the 1989 Rights Plan or to receive Rights under the new Plan. "The Rights are not being distributed in response to any effort to acquire control of the Company, and the Board is not aware of any such effort," said Marilyn Ware, Chairman of the Board of American Water Works. American Water Works Company is the largest and most geographically diverse investor-owned water utility business in the U.S. The Company, through its 23 utility subsidiaries, serves more than 7 million people in over 870 communities in 22 states. The Company is characterized as a growth-oriented utility and is involved in a number of industry consolidation and privatization initiatives including water and wastewater system acquisition, contract operation and public/private partnerships. ### -----END PRIVACY-ENHANCED MESSAGE-----