Championship Auto Racing Teams announces amendment to stockholder rights plan. INDIANAPOLIS (September 12, 2002) - Championship Auto Racing Teams, Inc. (NYSE:MPH) announced today that it has amended its stockholders rights plan to permit Gerald...
Championship Auto Racing Teams announces amendment to stockholder rights plan.
INDIANAPOLIS (September 12, 2002) - Championship Auto Racing Teams, Inc. (NYSE:MPH) announced today that it has amended its stockholders rights plan to permit Gerald R. Forsythe and his affiliated entities to increase their aggregate ownership of CART stock to 3,377,400 shares, or 23%, without triggering the stockholders rights plan. Forsythe, in consideration for the amendment, has agreed to vote and exchange all shares acquired in excess of 15% of the outstanding stock consistent with the recommendations of the Board of Directors of CART on all strategic matters for a period of three years.
The stockholder rights plan was established to ensure that CART shareholders receive fair value and equal treatment in the event of any proposed takeover of the company or other strategic actions. The Board of Directors believes that this amendment is in the best interest of CART and its shareholders. The amendment is being made at the request of Forsythe and not being made in response to any proposal to acquire CART.
Under the amended plan, if a person or group, other than Forsythe, acquires or commences a tender offer to acquire 15% or more of CART's common stock, except pursuant to a tender or exchange offer which is for all of the outstanding stock of the company at a price and on terms approved by the Board of Directors, the other stockholders will be entitled to purchase shares of CART stock at a purchase price equal to 50% of the then current market price.
Championship Auto Racing Teams, Inc. (NYSE: MPH) owns, operates and markets the CART FedEx Championship Series. Current points leader Cristiano da Matta, along with former series champions Michael Andretti and Jimmy Vasser, are among the stars battling for the 2002 FedEx Championship Series title with championship-winning teams such as Target Chip Ganassi Racing, Newman/Haas Racing, Patrick Racing and Team KOOL Green. CART Champ Cars are thoroughbred racing machines that reach speeds in excess of 200 miles per hour, showcasing the technical expertise of manufacturers such as Ford Motor Company, Lola Cars, Reynard Motorsport and Bridgestone/Firestone North American Tire, LLC. The 19-race 2002 CART FedEx Championship Series are being broadcast by new television partners, CBS, FOX and SPEED Channel. CART also owns and operates its top development series, the CART Toyota Atlantic Championship. Learn more about CART's open-wheel racing series at www.CART.com.
Statements made in this news release that state the company's or management's beliefs or expectations and which are not historical facts or which apply prospectively are forward-looking statements. It is important to note that the company's actual results could differ materially from those contained or implied by such forward-looking statements. Among the risks and uncertainties to be considered include, but are not limited to, CART's new co-promoted and self-promoted events; new television and advertising arrangements; the success of races in new venues; the current uncertain economic environment and weak advertising market; among others. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company's SEC filings made from time to time, including, but not limited to, the Form 10-Ks and subsequent 10-Qs. Copies of those filings are available from the company and the SEC.