TribLIVE

| Business


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

J.C. Penney adopts 'poison pill' strategy

About The Tribune-Review
The Tribune-Review can be reached via e-mail or at 412-321-6460.
Contact Us | Video | Photo Reprints

By The Associated Press

Published: 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.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Pa. unemployment rate falls to lowest since 2008; 12,000 more enter workforce
  2. Judge says American Airlines can’t end retiree benefits yet
  3. Court declines to block drug ruling in patent case
  4. Wages have soared in Pittsburgh, but economy appears to have stalled
  5. PPG shareholders vote against proposals; sales, profit see double-digit increases
  6. Emboldened by Italy move, QVC to expand into France
  7. Target expands subscription service tenfold
  8. Facebook feature lets users locate nearby pals
  9. Wal-Mart rolls out money transfer service
  10. Secret Service close to understanding Target data breach
  11. Heinz offers Pittsburgh workers a buyout if they are unhappy
Subscribe today! Click here for our subscription offers.