J.C. Penney adopts a “poison pill” [View all]
J.C. Penney Co. is trying to buy some time to right itself without having to also fight a battle for control of the 111-year-old department store chain.
J.C. Penney’s board has adopted a shareholder rights plan designed to prevent investors from gaining control of the company.
The rights plan, also known as a poison pill, is for one year and was adopted after it consulting with outside advisers.
The move comes a week after hedge fund manager and Penney’s largest shareholder Bill Ackman resigned from Penney’s board. Tuesday he told his hedge fund investors that he may sell his 17.7 percent stake, but wasn’t sure when. Ackman and Penney also agreed to a plan for his exit last week.
More at http://bizbeatblog.dallasnews.com/2013/08/j-c-penney-adopts-a-poison-pill.html/ .
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