Amgen Sets Up New Plan for Shareholder Rights

Amgen Inc., the Thousand Oaks-based biotechnology giant, set up a new shareholder rights plan to act as a takeover shield.

Amgen declared a distribution of one preferred share purchase right for each outstanding share of its common stock.

Each right entitles stockholders to buy one-1,000th of a share of its new Series A Junior Participating Preferred Stock of the company at an exercise price of $225.

The rights can be exercised if a person or group buys at least 10% of Amgen’s common stock, or it they announce a tender offer for more than 10% of Amgen’s common stock.

The new rights plan is similar to an existing plan that is scheduled to expire in January 1999.

The new rights plan will expire in 10 years. The dividend distribution rights plan will be payable to Amgen’s stockholders of record on March 21.