CUB - Cubic adopts shareholder rights plan after Elliott shows interest to purchase; shares +14%

Cubic (CUB) is up 14% in pre-market, after announcing adoption of a limited-duration shareholder rights plan and declaring a distribution of one right for each outstanding share of common stock.The Rights Plan is effective immediately and will expire on September 19, 2021; and record date for the Rights distribution is October 1, 2020.Elliott Management informed Cubic privately that it has acquired a direct ownership and derivatives position that provided economic exposure equivalent to ~15% of Cubic’s outstanding stock. Elliott further informed that it is interested in acquiring Cubic.The Cubic Board has not initiated a process to sell, and believes that Cubic’s standalone prospects are excellent and the current strategic plan, including the recently announced NextCubic initiative, will create significant value for all Cubic shareholders.

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Cubic adopts shareholder rights plan after Elliott shows interest to purchase; shares +14%