| Business

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

J.C. Penney adopts 'poison pill' strategy

Email Newsletters

Sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Friday, Aug. 23, 2013, 12:01 a.m.

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.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Business Headlines

  1. German financial giant Allianz SE slashes coal investments
  2. Black Friday loosens its hold on the holiday season
  3. New rules proposed for high-speed traders
  4. Union leaders warn Post-Gazette newsroom of possible layoffs
  5. Coke had hand in shaping nonprofit health group, emails show
  6. Feds upgrade GDP’s growth
  7. Covestro leader MacCleary finds stability amid change
  8. Mall stores required to open for Thanksgiving
  9. Stocks shake off Middle East tensions, drop in consumer confidence
  10. Hedge fund Elliott Management grabs 6.4 percent stake in Alcoa
  11. Home rental prices rise at slower pace in October