There are many kinds of shareholder rights plans other than the one we are talking about. The most typical would be for a new share issue. In that example there would be, say 1 new share issued for each 5 existing shares, at a predetermined price. I have been involved in several of these.

The situation here is different but the rules would be the same.I have never actually seen this kind of shareholders rights plan actually implemented, but in a typical fashion you would receive notice from the trust company that administers the share distribution. This notice would give you a time period (typically thirty days) to act.

Once you have this notice, it is a simple act to sell some of your existing shares and buy the new ones. There would be no conflict as you would have the notice, and the new owner of the shares would not as the rights would be issued as of ownership on a certain date.

Regards

K