ALLAIRE CORP
8-K, 2000-12-11
PREPACKAGED SOFTWARE
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 02549



                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934


Date of Report (date of earliest event reported):   DECEMBER 8, 2000


                               ALLAIRE CORPORATION
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


           DELAWARE                  ---------                   41-1830792
--------------------------------------------------------------------------------
(State or other jurisdiction)      (Commission                 (IRS Employer
      of incorporation)            File Number)             Identification No.)


275 GROVE STREET, NEWTON, MA                                      02466
--------------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip Code)


Registrant's telephone number, including area code: (617) 219-2000




                                 NOT APPLICABLE
--------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)


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Item 5. OTHER EVENTS.

     On December 8, 2000, the Board of Directors of Allaire Corporation (the
"Company") declared a dividend of one Right for each outstanding share of Common
Stock, par value $.01 per share, of the Company (the "Common Shares"). The
Rights will be issued to the holders of record of Common Shares outstanding on
December 22, 2000, and with respect to Common Shares issued thereafter until the
Distribution Date (as defined below) and, in certain circumstances, with respect
to Common Shares issued after the Distribution Date. Each Right, when it becomes
exercisable as described below, will entitle the registered holder to purchase
from the Company one one-thousandth (1/1000th) of a share of Series A
Participating Cumulative Preferred Stock, par value $.01 per share, of the
Company (the "Preferred Shares") at a price of $55 (the "Purchase Price"). The
description and terms of the Rights are set forth in a Rights Agreement dated as
of December 8, 2000 (the "Rights Agreement") between the Company and Fleet
Bank, N.A., as Rights Agent (the "Rights Agent").

     Under the rights plan, a person's "ownership threshold" is the greater of
15% of Allaire's common stock outstanding at any time or the lowest percentage
of Allaire's common stock beneficially owned by that person on or after December
8, 2000 plus 1% of Allaire's common stock outstanding on December 8, 2000. Until
the earlier of (i) such time as the Company learns that a person or group
(including any affiliate or associate of such person or group) acquired, or
obtained the right to acquire, beneficial ownership equal to or exceeding that
person's or group's "ownership threshold" (such person or group being called an
"Acquiring Person") or (ii) such date, if any, as may be designated by the Board
of Directors of the Company following the commencement of, or first public
disclosure of an intent to commence, a tender or exchange offer for outstanding
Common Shares which could result in the offeror becoming the beneficial owner of
15% or more of the outstanding Common Shares (the earlier of such dates being
called the "Distribution Date"), the Rights will be evidenced by the
certificates for Common Shares registered in the names of the holders thereof
(which certificates for Common Shares shall also be deemed to be Right
Certificates, as defined below) and not by separate Right Certificates.
Therefore, until the Distribution Date, the Rights will be transferred with and
only with the Common Shares.

     As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights ("Right Certificates") will be mailed to
holders of record of the Common Shares as of the close of business on the
Distribution Date (and to each initial record holder of certain Common Shares
originally issued after the Distribution Date), and such separate Right
Certificates alone will thereafter evidence the Rights.

     The Rights are not exercisable until the Distribution Date and will expire
on December 8, 2010 (the "Expiration Date"), unless earlier redeemed by the
Company as described below.

     To preserve the actual or potential economic value of the Rights, the
number of Preferred Shares or other securities issuable upon exercise of a
Right, the Purchase Price and Redemption Price and the number of Rights
associated with each outstanding Common Share are all subject to adjustment by
the Board of Directors as provided in the Rights Agreement in the event of any
change in the Common Shares or Preferred Shares, whether by reason of stock
dividends, stock splits, recapitalizations, mergers, consolidations,
combinations or exchanges of securities, split-ups, split-offs, spin-offs,
liquidations, other similar changes in capitalization, any distribution or
issuance of cash, assets, evidences of indebtedness or subscription rights,
options or warrants to



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holders of Common Shares or Preferred Shares, as the case may be (other than
distribution of the Rights or cash dividends) or otherwise.

     The Preferred Shares are authorized to be issued in fractions which are an
integral multiple of one one-thousandth (1/1000th) of a Preferred Share. The
Company may, but is not required to, issue fractions of shares upon the exercise
of Rights, and, in lieu of fractional shares, the Company may issue certificates
or utilize a depository arrangement as provided by the terms of the Preferred
Shares and, in the case of fractions other than one one-thousandth (1/1000th) of
a Preferred Share or integral multiples thereof, may make a cash payment based
on the market price of such shares.

     Upon a person or a group becoming an Acquiring Person, the Rights will
entitle each holder of a Right to purchase, for the Purchase Price, that number
of one one-thousandths (1/1000ths) of a Preferred Share equivalent to the number
of Common Shares which at the time of the transaction would have a market value
of twice the Purchase Price.

     In the event the Company is acquired in a merger or other business
combination or 50% or more of its assets or assets representing 50% or more of
its earning power are sold, leased, exchanged or otherwise transferred (in one
or more transactions) to a publicly traded corporation, each Right will entitle
its holder to purchase, for the Purchase Price, that number of common shares of
such corporation which at the time of the transaction would have a market value
of twice the Purchase Price. In the event the Company is acquired in a merger or
other business combination or 50% or more of its assets or assets representing
50% or more of the earning power of the Company are sold, leased, exchanged or
otherwise transferred (in one or more transactions) to an entity that is not a
publicly traded corporation, each Right will entitle its holder to purchase, for
the Purchase Price, at such holder's option, (i) that number of shares of such
entity (or, at such holder's option, of the surviving corporation in such
acquisition, which could be the Company) which at the time of the transaction
would have a book value of twice the Purchase Price or (ii) if such entity has
an affiliate which has publicly traded common shares, that number of common
shares of such affiliate which at the time of the transaction would have a
market value of twice the Purchase Price.

     Any Rights that are at any time beneficially owned by an Acquiring Person
(or any affiliate or associate of an Acquiring Person) shall be null and void
and nontransferable, and any holder of any such Right (including any purported
transferee or subsequent holder) shall not have any right to exercise or
transfer any such right.

     At any time after a person or a group becomes an Acquiring Person, the
Board of Directors of the Company may exchange all or part of the then
outstanding Rights (other than Rights that have become null and void and
nontransferable as described above) for consideration per Right consisting of
one-half of the securities that otherwise would have been issuable to the holder
of each Right upon exercise thereof. The Board of Directors of the Company may
also issue, in substitution for Preferred Shares, Common Shares having an
equivalent market value to the Preferred Shares if, at such time, the Company
has a sufficient number of Common Shares issued but not outstanding or
authorized but unissued.



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     At any time prior to the earlier of (i) such time as a person becomes an
Acquiring Person and (ii) the Expiration Date, the Board of Directors of the
Company may redeem the Rights in whole, but not in part, at a price (in cash or
Common Shares or other securities of the Company deemed by the Board of
Directors to be at least equivalent in value) of $.001 per Right (the
"Redemption Price").

     Immediately upon the action of the Board of Directors of the Company
electing to redeem the Rights, the Company shall make an announcement thereof,
and, upon such election, the right to exercise the Rights will terminate and the
only right of the holders of Rights will be to receive the Redemption Price.

     Until a Right is exercised, the holder thereof, as such, will have no
rights therefrom as a stockholder of the Company, including, without limitation,
the right to vote or to receive dividends.

     At any time prior to the Distribution Date, the Company may, without the
approval of any holder of the Rights, supplement or amend any provision of the
Rights Agreement (including the date on which the Distribution Date shall occur,
the time during which the Rights may be redeemed or the terms of the preferred
Shares), except that no supplement or amendment shall be made which reduces the
Redemption Price or provides for an earlier Expiration Date.

     The Rights have certain antitakeover effects. The Rights will cause
substantial dilution to a person or group that attempts to acquire the Company
without conditioning the offer on substantially all the Rights being acquired.
The Rights will not interfere with any merger or other business combination or
with a third party approved by the Board of Directors of the Company since the
Board of Directors of the Company may, at its option, at any time prior to any
person becoming an Acquiring Person, redeem all but not less than all of the
then outstanding Rights at the Redemption Price.

     A Registration Statement on Form 8-A with respect to the Rights has been
filed with the Securities and Exchange Commission. The Rights Agreement
specifying the terms of the Rights, the Certificate of Designation of the
Preferred Shares specifying the terms of the Preferred Shares (Exhibit A to the
Rights Agreement) and the form of Right Certificate (Exhibit B to the Rights
Agreement) are filed herewith as exhibits. The foregoing description of the
Rights does not purport to be complete and is qualified in its entirety by
reference to such exhibits, which are incorporated herein by reference.




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Item 7. EXHIBITS.


 NUMBER     TITLE

  4(a)      Rights Agreement dated as of December 8, 2000, between Allaire
            Corporation and Fleet Bank, N.A., as Rights Agent.

  4(b)      Form of Certificate of Designation of Series A
            Participating Cumulative Preferred Stock of Allaire
            Corporation (which is attached as Exhibit A to the
            Rights Agreement filed as Exhibit 4(a) hereto).

  4(c)      Form of Right Certificate (which is attached as Exhibit B
            to the Rights Agreement filed as Exhibit 4(a) hereto).












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                                    SIGNATURE


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                             ALLAIRE CORPORATION


Dated: December 11, 2000                    By: /s/ David J. Orfao
                                                ----------------------
                                                David J. Orfao
                                                President and Chief
                                                Executive Officer








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                                  EXHIBIT INDEX

                     Pursuant to Item 601 of Regulation S-K


 NUMBER     TITLE

  4(a)      Rights Agreement dated as of December 8, 2000, between Allaire
            Corporation and Fleet Bank, N.A., as Rights Agent.

  4(b)      Form of Certificate of Designation of Series A
            Participating Cumulative Preferred Stock of Allaire
            Corporation (which is attached as Exhibit A to the
            Rights Agreement filed as Exhibit 4(a) hereto).

  4(c)      Form of Right Certificate (which is attached as Exhibit B
            to the Rights Agreement filed as Exhibit 4(a) hereto).








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