Miss Phos owner reveals stockholder rights plan

Madison, Miss.-Phosphate Holdings Inc., the sole owner of Mississippi Phosphates Corp., the Pascagoula, Miss., phosphate producer, announced Dec. 13 that on Dec. 5, 2007, its board of directors adopted a stockholder rights plan designed to help protect the long-term value of the company for its stockholders and to enable all of its stockholders to realize the full and fair value of their investment in the event of any proposed takeover of the company. Under the plan, the board declared a dividend of one common stock purchase right for each share of the company’s common stock outstanding, payable on Dec. 17, 2007, to stockholders of record at the close of business on such date. Under the plan, the rights will initially trade together with the company’s common stock and will not be exercisable. The rights generally will become exercisable to acquire the company’s common stock (or, in certain circumstances, shares of an acquirer) at a discounted price if a person or group becomes an “acquiring person” through the acquisition of 20 percent or more of the company’s outstanding common stock or the announcement of a tender or exchange offer that would result in ownership of 20 percent or more of the company’s common stock on terms not approved by the board. If a person or group already owned 20 percent or more of the company’s outstanding common stock on the date the rights plan was adopted, the rights will become exercisable if that person or group acquires any additional shares of the company’s outstanding common stock after the date of the adoption of the plan. Rights held by an “acquiring person” will become void and will not be exercisable to purchase shares at the bargain purchase price. The board, at its option, may redeem the rights for $0.01 per right for a limited time after a person becomes an “acquiring person.” The plan also permits the board to issue to holders of its common stock other than an “acquiring person” one share of common stock in exchange for each right, which is then exercisable. The rights will expire on Dec. 31, 2009, unless earlier redeemed, exchanged, or amended. A copy of the rights plan will be available on the company’s website at www.missphosphates.com. Phosphate Holdings trades on the OTC Bulletin Board and its shares as of Dec. 13 were reported at $42.00 per share.