NEW YORK (AP) – JCPenney is bolstering its shareholder rights plan, or “poison pill” — typically an effort to thwart takeover attempts.
The shareholder rights plan can now be put into effect if an individual or group acquires 4.9 percent or more of its outstanding stock. That’s down from a 10 percent threshold.
The corporate defense strategy allows existing shareholders to buy more shares at a very low price if that occurs.
JCPenney said Tuesday that the purpose of lowering the threshold is to protect its ability to use certain funds that can be used for tax benefits.
The Plano-based department store chain is cutting jobs and closing stores in an effort to return to profitability.
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
- Southwest Airlines Sought More Time For Engine Inspections
- Robert DeNiro Pens Student Excuse Letter For National School Walkout
- Software Glitch Causes Water Bill Outrage In White Settlement
- Dallas ISD Teacher Arrested For Improper Relationship With Student
- Former WWE Star Pete Gas Discusses Situation Between Undertaker & Rusev
- Azle Residents Take Quake Concerns To Austin
- Cowboys’ Romo Update: Complication In Back Surgery
- TCU Students Demand Higher Quality Toilet Paper
- Garland Police Arrest Teen Suspect For 7-11 Clerk Murder
- Owner Reunites With Dog 4 Months After ‘Dognapping’
- PHOTOS: Your Pet Pictures