SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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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):
January 7, 1999
Community Bancshares, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-16461 63-0868361
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
Main Street, P.O. Box 1000, Blountsville, Alabama 35031
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (205) 429-1000
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Not applicable
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(Former Name)
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Item 5. Other Events.
On January 21, 1999, Community Bancshares, Inc. issued the
following press release:
Blountsville, AL - The Board of Directors of Community Bancshares,
Inc., declared a dividend of one Preferred Share Purchase Right on each
outstanding share of Community Bancshares common stock on January 7,
1999.
Kennon R. Patterson, Sr., Chairman, President, and Chief Executive
Officer of Community Bancshares, Inc., stated: "The rights are designed
to assure that all of the company's stockholders receive fair and equal
treatment in the event of any proposed takeover of the company and to
guard against abusive tactics to gain control of the company without
paying all stockholders a premium for that control."
The rights are intended to enable the company's stockholders to
realize the long-term value of their investment in Community Bancshares.
The rights will not prevent a takeover, but should encourage anyone
seeking to acquire the company to negotiate with the board prior to
attempting such action.
The rights will be exercised only if a person or group acquires 15
percent or more of the company's common stock or announces a tender offer
which would result in ownership by a person or group of 15 percent or
more of the common stock. Each right will entitle stockholders to buy
one one-hundredth of a share of a new series of junior participating
preferred stock at an exercise price of $84.
Community Bancshares, Inc., is a registered bank holding company
headquartered in Blountsville, Alabama. Through its principal
subsidiary, Community Bank, the company offers a wide range of commercial
and consumer banking services.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed by the
undersigned, thereunto duly authorized.
COMMUNITY BANCSHARES, INC.
(Registrant)
By /s/ Bishop K. Walker, Jr.
Name:Bishop K. Walker, Jr.
Title: Vice Chairman & General Counsel
Dated: January 21, 1999
