Iron Mountain +2.7% AH, approves REIT Protection Rights Agreement

|About: Iron Mountain Inc. (IRM)|By:, SA News Editor

Iron Mountain (IRM) shares jump 2.7% AH after the company discloses its board has approved a REIT Status Protection Rights Agreement providing for a dividend of one preferred stock purchase right for each share of common stock (Dec. 20 record date). Each right entitles the holder to purchase one-thousandth of a Series A Junior Preferred share for $114. (8-K)

The company intends to convert to the REIT structure no earlier than the taxable year beginning Jan. but "has not yet received from the [IRS] the private letter rulings it believes it requires ... Nevertheless, the Company ... will begin to operate its business in a manner consistent with being a REIT effective January 1."

The company entered the rights agreement to protect its potential conversion to a REIT by preventing "concentrated ownership" of common equity. IRM will seek shareholder approval to impose ownership limitations into its charter upon successful conversion to a REIT.