CHICAGO, April 28 /PRNewswire/ -- The directors of W.W. Grainger, Inc.
(NYSE: GWW) at their meeting today declared a cash dividend of 16 cents per
share payable June 1, 1999 to shareholders of record on May 10, 1999. This
represents an increase of 6.7% from the prior quarterly rate of 15 cents per
share.
Also at the meeting, the directors approved a shareholder rights plan to
replace the 1989 shareholder rights plan which will expire on May 15, 1999.
The new plan, as its predecessor, is designed to help ensure that all Grainger
shareholders receive fair treatment in the event of an unsolicited attempt to
gain control of Grainger, and to help discourage certain abusive takeover
tactics. The Board of Directors is unaware of any current effort by a third
party to acquire control of the company.
Under the new plan, share purchase rights will be distributed as a
dividend at the rate of one right for each share of common stock held at the
close of business on May 10, 1999. Separate certificates evidencing the new
rights will not be issued unless and until they become exercisable.
In the event a person or group acquires 15% or more of Grainger's
outstanding common stock without prior approval of Grainger's Board
of Directors, the new rights allow the other Grainger shareholders to
acquire Grainger common stock having a market value equal to two times the
rights' exercise price. The initial exercise price is $250, subject to anti-
dilution adjustments. The new rights, which are redeemable by the Company for
a nominal amount at any time before they become exercisable, will expire on
May 15, 2009.
W.W. Grainger, Inc.(GWW), with 1998 sales of $4.3 billion, is the leading
North American provider of maintenance, repair, and operating (MRO) supplies,
services, and related information to businesses and institutions. GWW shares
are traded upon the New York and Chicago stock exchanges. For more
information, visit Grainger on-line at http://www.grainger.com.
SOURCE W.W. Grainger, Inc.
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Related links:
http://www.grainger.com
Company News On-Call:
http://www.prnewswire.com/comp/953850.html or fax,
800-758-5804, ext. 953850
CONTACT:
Robert D. Pappano of W.W. Grainger,
847-793-6442
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