ST. LOUIS, Mo., Feb. 17 /PRNewswire/ -- Mallinckrodt Inc. (NYSE: MKG)
announced today that it has redeemed the rights issued pursuant to the Rights
Agreement, dated Feb. 19, 1996, and amended Sept. 2, 1998, between
Mallinckrodt and the First National Bank of Chicago as Rights Agent.
Under terms of the Rights Agreement, shareholders of record as of the
Record Date, which will be March 15, 1999, are entitled to receive a
redemption payment of five cents per right, or share.
Mallinckrodt's directors also declared a dividend of 11.5 cents per share
of the company's common stock, payable March 31, 1999, to shareholders of
record at the close of business on March 15, 1999. It is the company's intent
to recommend to the Board of Directors that the regular quarterly dividend of
16.5 cents per share of common stock be continued in future quarters.
Payment of the redemption price of five cents per share of the company's
common stock and the dividend of 11.5 cents per share will be mailed on March
31 to the shareholders of record March 15.
In August 1998, Mallinckrodt announced it had agreed, in response to
concerns raised by some shareholders, that on or before the date of the
company's 1999 annual meeting it would either terminate the current rights
plan or put the existing plan to a shareholder vote. By terminating the
rights plan, C. Ray Holman, chairman and chief executive officer, stated, "the
company's Board of Directors desired to avoid the distraction and expense that
would necessarily arise in seeking a shareholder vote. We would prefer to
remain totally focused on our goal of building shareholder value through solid
growth of the company's businesses."
Mallinckrodt's directors also declared the regular $1.00 per share
quarterly dividend on Mallinckrodt's 4 percent cumulative preferred stock,
payable on March 31, 1999, to shareholders of record at the close of business
on March 15, 1999.
Based in St. Louis, Mo., Mallinckrodt has three healthcare product groups
-- Imaging, Pharmaceuticals and Respiratory. The company operates in more
than 100 countries and had fiscal 1998 net sales of $2.4 billion. The
Mallinckrodt web site address is http://www.mallinckrodt.com.
SOURCE Mallinckrodt Inc.
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Related links:
http://www.mallinckrodt.com
Company News On-Call:
http://www.prnewswire.com/comp/440950.html or fax,
800-758-5804, ext. 440950
CONTACT:
Media Contact, Barbara Abbett, 314-654-5230,
or e-mail, Communications@mkg.com, or Investor Contact, Barbara
Gould, 314-654-3190, or e-mail, Invest@mkg.com, both of
Mallinckrodt Inc.
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