RE: Shareholders Rights Plan waived!Frontier Pacific’s Shareholder Rights Plan
As we have previously advised you, the Frontier Pacific Shareholder Rights Plan was implemented with the view of giving the board of directors and Frontier Pacific shareholders sufficient time to properly consider any takeover bid made for Frontier Pacific and to allow enough time for competing bids and alternative proposals to emerge. The Rights Plan was scheduled to be submitted to shareholders for consideration at a shareholders’ meeting scheduled for June 19, 2008. As discussed further below, the Eldorado Offer remains the only outstanding offer for the Frontier Pacific shares and your board believes that you should not be deprived of the opportunity to accept that offer if you wish to do so. Accordingly, although there was significant shareholder support for the Rights Plan, the board of directors of Frontier Pacific has elected to waive the application of the Plan to the Eldorado Offer and to cancel the shareholders’ meeting scheduled to consider the Plan.
IMO...Maybe a compromise of a backroom deal brewing between Frontier and Eldorado?