JC Penney adopts 'poison pill' to protect against potential takeover attempts
By AP Wire Service on Aug 23, 2013, at 2:26 AM Updated on 8/23/13 at 5:35 AM
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PLANO, Texas (AP) - Struggling retailer J.C. Penney Co. is adopting a plan to prevent a takeover attempt just two days after reporting its sixth straight quarter of big losses and steep revenue declines.
The plan announced Thursday allows existing shareholders to buy more shares at a very low price if an individual or an entity acquires 10 percent or more of the company's outstanding stock.
It's the second time in recent years that the company has put into place a so-called "poison pill" plan.
In October 2010, Plano-based J.C. Penney enacted the defense after activist investor William Ackman of Pershing Square and Vornado Square Management, chaired by Steve Roth, snapped up large stakes.
The company eventually put both men on its board, a decision that ended badly last week.
Ackman resigned from the board after lashing out at other directors publicly. The two sides hammered out an agreement that will allow Ackman to unload his J.C. Penney stake. Roth is still on the board.
J.C. Penney said there is no current attempt to take over the company.
Original Print Headline: J.C. Penney adopts 'poison pill'
Retail
Incredible Pizza Co. will jump into the indoor trampoline park business later this year.
A recurrent favorite, Wal-Mart Stores Inc. once again ranks among top picks of investing professionals who like the retailer's focus on international expansion and growth of its smaller store formats.
