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Centex Corporation
Centex Adopts Stockholder Rights Plan to Protect Deferred Tax Assets
March 14th, 2009
Centex Corp. announced that its Board of Directors has adopted a stockholder rights plan designed to help preserve the value of certain deferred tax assets that are primarily associated with net operating loss carry-overs and built-in losses under Section 382 of the Internal Revenue Code. The Company's ability to use its existing deferred tax assets would be limited by Section 382 if an "ownership change" occurred -- generally, a greater than 50-percent change in ownership by 5-percent shareholders in any three-year period. Given the rule's broad definition, an ownership change could be the unintended consequence of otherwise ordinary buying and selling of the Company's...
Source: Law & Health Weekly (2009-03-14)
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