From Our CBS Music Sites
PLANO, Texas (AP) — Struggling retailer J.C. Penney is adopting a “poison pill” just two days after reporting its sixth straight quarter of big losses and steep revenue declines.
The company said Thursday that the one-year shareholder rights plan will prevent any takeover attempts and will ensure that stockholders don’t loss the chance to realize the full value of their investment.
J.C. Penney Co., based in Plano,Texas, said that the plan was not adopted in response to any particular takeover attempt.
So-called stockholder rights plans allow existing shareholders to buy more shares at a very low price if an investor or entity not approved by the board snaps up a large chunk of company shares.
The retailer is trying to survive a botched turnaround strategy by ousted CEO Ron Johnson.
(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)