Family Dollar adopts shareholder rights plan on Icahn stake
June 9, 2014-- Home Textiles Today,
Matthews, N.C. – Family Dollar Stores adopted a one-year shareholder rights plan, known as a poison pill, which has a 10% beneficial ownership threshold.
The plan is intended to protect shareholders against a person or group gaining control of the company by open market accumulation without paying a premium for all shares
The move comes two days after activist investor Carl Icahn reported a 9.39% stake in the company on Friday, making him its largest shareholder.
The plan applies to all current and future stockholders, according to a statement from the retailer. It “is not designed to prevent an offer to acquire the company, but rather to allow the board adequate time to consider any and all alternatives,” it said.
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