JCPenney readies 'poison pill' option
Retail Editor 2 -- Home Textiles Today, January 28, 2014
Plano, Texas - JCPenney is making a move that would protect it from a potential takeover.
The retailer amended its shareholder rights plan - often called a "poison pill," which will be triggered if someone or a group accumulates 4.9% or more of its outstanding stock, down from a previous 10% barrier.
It's a defense mechanism that enables current shareholders to buy more shares at a very low price.
In a statement, JCPenney said the move is "to protect stockholder value" by preserving the company`s ability to fully use its funds for tax benefits, and a move that has been "adopted by other public companies with significant net operating losses."
The company recently announced it is cutting 2,000 jobs and shuttering 33 stores.
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