J.C. Penney adopts 'poison pill' strategy
Struggling retailer J.C. Penney 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.
It's the second time in recent years that the company has put into place a so-called “poison pill” plan. In October 2010, J.C. Penney enacted the defense when 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; Ackman resigned last week, capping a public feud with other directors. Roth is still on the board.
J.C. Penney said there is no current attempt to take over the company.
Under the plan, if an individual or entity acquires 10 percent or more of the company's outstanding stock, existing shareholders would be allowed to buy more shares at a very low price.
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