Hartmarx Bets Pill On Its Stock Price

Hartmarx Corp. says it hears the call of many shareholders that it kill off its poison pill but it wants to make sure it has a respectable stock price before the execution. The clothing manufacturer, whose best known brand is the premium-priced Hart Schaffner & Marx line of men’s suits, in September became what is believed to be the first company to directly link the life of its shareholder rights plan to the stock price. In an amendment to the plan, directors of the company, which has been attacked by hostile bidders in the past and suffered through some rough times in concert with other U. S. apparel makers, voted to automatically terminate the pill if the price of Hartmarx common “exceeds the then current book value per share for 60 consecutive days.” Northrop Grumman Corp. directors voted to eliminate its rights plan on Dec. 31, joining a handful of companies that have acted to conform with a tide of investor anti-pill sentiment in recent years. And Marathon Oil Corp., which does not have a pill, adopted a policy of installing one only if the board gets shareholder approval. These companies adopted pills in September: American Axle & Manufacturing Holdings Inc.; Intersil Inc.; Medwave Inc.; North Pittsburgh Systems Inc.; QCR Holdings Inc.; and Rimage Corp. Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.majournal.com