Old Republic Extends Shareholder Rights Plan
|June 21, 2007|
CHICAGO, -- Old Republic International Corporation (NYSE: ORI - News) today announced that its Board of Directors has approved an extension of the Company's shareholder rights plan originally adopted in June 1987. The plan, as now amended, extends through June 26, 2017, and reflects certain technical updating changes.
In reporting on the Board's action, A. C. Zucaro, chairman and chief executive officer, said, "The amended rights plan, like its predecessors, represents a sound and reasonable means of protecting the interest of shareholders and other stakeholders. The rights can be activated in the face of a possible takeover attempt that does not treat all shareholders equally, that disregards the Company's true value, or that exhibits self-dealing, coercive behavior or agenda-driven objectives and intents inimical to the best short or long term interests of stakeholders, including both shareholders and the Company's insureds. The plan has no immediate dilutive effect and is not being renewed due to any known threat to Old Republic's long-term mission as an independent company."
For the past 20 years during which the predecessor rights plans have been in effect, Old Republic's total market return, with dividends reinvested, has grown at a compounded annual rate of 15.1 percent per share, the shareholders' equity account, inclusive of cash dividends, has grown at an average annual rate of 13.6 percent per share, and the regular cash dividend has grown at an 11.6 percent annual compound rate. According to the Spring 2007 edition of Mergent's Dividend Achievers, Old Republic is one of just 119 companies, out of 10,000-plus publicly held corporations, that have posted at least 25 consecutive years of annual dividend growth. For the past 20 years, the total market return, with dividends reinvested, for the S&P 500 Index has grown at a 12.1 percent annual compound rate.
Source: Old Republic International Corporation