Sunday, 25 January 2015
Last updated 2 days ago
Aug 23 2013 | 5:28am ET
J.C. Penney Co. wants to make sure it doesn’t have another William Ackman to deal with.
The retailer, recently embroiled in a very public fight with the Pershing Square Capital Management chief, its largest shareholder, adopted a poison pill that makes it very difficult and expensive to buy more than 10% of the company. The shareholder rights plan will expire in a year and doesn’t cover Pershing Square—as long as any increase in its stake doesn’t violate existing agreements with the company.
The plan will “protect against potential future use of coercive or abusive takeover techniques,” J.C. Penney said.
Pershing Square owns nearly 18% of J.C. Penney. Ackman resigned from the company’s board last week after publicly calling for the replacement of the company’s chairman and interim CEO.
Following his exit, Ackman said he would consider selling off his stake in J.C. Penney. The poison pill makes it unlikely that another activist would be able to take his place.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…