J.C. Penney adopted a “shareholder rights” plan, that analysts called a “poison pill” that would make it harder for investors to take over the company.
Last week, two so-called “activist” investment companies purchased 26% of the company’s stock.
The plan “restricts any person or group from acquiring beneficial ownership of 10% or more of the outstanding Common Stock, or, in the case of any person or group that owns 10% or more of the outstanding Common Stock on the date of announcement of the Company’s entry into the Rights Agreement, any additional shares of Common Stock,” the company said in an SEC filing.
It noted that the plan “will not prevent a takeover of the Company, but may cause substantial dilution to a person that acquires 10% or more of the Common Stock.”
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