Kodak adopts shareholder rights plan

ROCHESTER, New York (AP) — Photography pioneer Eastman Kodak Co. said Monday that its board has adopted a shareholder rights agreement designed to preserve its tax assets.

The plan is designed to prevent shareholders from increasing their stake in the company to an extent that Kodak would face a higher income tax liability. Kodak said it had $2.9 billion in tax attributes as of the end of last year. In certain cases, this can be used to offset tax liabilities, including those related to gains the company would make from the possible sale of its 1,100 digital imaging patents.

But U.S. tax rules limit the use of such tax attributes if shareholders with a stake of 5 percent or more collectively increase their holdings by more than 50 percentage points over 3 years.

Kodak's plan would be triggered by a shareholder acquiring a stake of more than 4.9 percent in the company. Shareholders who already own a 4.9 percent stake would not trigger the plan unless they acquire more shares.

The move comes just weeks after the company announced exploring "strategic alternatives" for its digital imaging patents, including a possible sale. The patents the company is shopping around account for about 10 percent of its total portfolio.

Kodak has been struggling with falling sales of film and digital cameras even as revenue from inkjet printer sales is growing. Last month the company posted a $179 million loss for its second quarter.

Shares of Rochester, New York-based Kodak rose 8 cents, or 3.3 percent, to $2.48 in premarket trading.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Ayungin dilemma Ramon Casiple - Parallaxis
    Ayungin dilemma

    China faces a dilemma in Ayungin Shoal and other contested areas. If it waits for the ITLOS—which may decide against it—it would have tacitly bound itself to UNCLOS and risk a rogue state reputation if it asserts its claim in the South China Sea. If its militarily acts now, it may face international isolation. …

  • 48 nabbed in biggest anti-trafficking catch in Bongao VERA Files - The Inbox
    48 nabbed in biggest anti-trafficking catch in Bongao

    By Jake Soriano, VERA Files Bongao, Tawi-tawi—A team of Marines and policemen intercepted around noon Thursday 48 people, 12 of them minors, believed recruited by a human trafficking syndicate for work in Malaysia. The arrest constitutes what advocates called the … Continue reading → …

  • Docs vow to pay right taxes, make peace with BIR VERA Files - The Inbox
    Docs vow to pay right taxes, make peace with BIR

    By Kiersnerr Gerwin Tacadena, VERA Files Leaders of the medical profession have made peace with their former adversary, the Bureau of Internal Revenue (BIR), and joined forces in a campaign to get doctors to pay the right taxes. BIR Commissioner … Continue reading → …

POLL
Loading...
Poll Choice Options