Beazer Homes USA Inc. (BZH) has enacted a new shareholder rights
plan, 10 months after ending a prior one, as the home builder moves
to protect benefits that could offset future income taxes.
A number of companies in the sector the past several years have
adopted the plans to protect tax assets from a so-called change in
control. There has been concerns that low share prices could lead
to big stock purchases and trip the ownership-change provisions in
U.S. tax law.
That has happened twice, in December 2007 and this past January,
Beazer said Monday, limiting the company's ability to use the
assets. They would be "further substantially limited" by another
"ownership change", which generally relates to the cumulative
change in ownership among shareholders with more than a 5% stake
during a three-year period.
The company seeks to get shareholder approval for the plan at
Beazer's next annual meeting.
It has been in the red the past two quarters after benefiting
early in 2010 from the federal government's home-buyer tax
credit.
Beazer's shares, down 15% the past year after tripling in 2009,
closed Friday at $4.64 and were inactive premarket.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com