Petrohawk Energy cancels shareholders-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."

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

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 $1.38, or 5.6 percent, to $26.26 in afternoon trading.