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 This material may not be published, broadcast, rewritten or redistributed.)
- Apple Expected To Show New iPhone On September 7
- Strong Keeping Longhorns Quarterback A Secret
- Cowboys Zeke: ‘Bad Decision’ To Visit Seattle Pot Shop
- New School Opens At Site Of Sandy Hook Shooting Rampage
- Man Dressed As ‘Zorro’ Arrested After False Report Of Shooting At LAX
- 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