Petrohawk Energy cancels shareholder-rights plan

Petrohawk Energy Corp. said Thursday it terminated its shareholder-rights plan, effective Wednesday.

Petrohawk Chief Executive Floyd C. Wilson said last year when the Houston company adopted the rights plan that it was not "in response to a specific takeover threat." At the time it said, "given recent trading activity, it is prudent for us to position ourselves to protect shareholder value."

Companies typically put shareholder-rights plans in place to protect themselves from hostile takeovers.

A spokeswoman Thursday said that in the current market environment, the plan was no longer needed.

The oil and gas company said termination of its rights plan will not affect its common shares, which will continue to be traded on the New York Stock Exchange. The rights plan had been set to expire Oct. 14.

Shares of Petrohawk rose $1.40, or 5.6 percent, to $26.28 in afternoon trading. It's shares were trading around $10 when it announced the rights plan.