Struggling retailer J.C. Penney is adopting a plan to prevent a takeover attempt. It’s the second time in recent years that the company has put into place a “poison pill” plan.
In October 2010 J.C. Penney enacted the defense after activist investor William Ackman of Pershing Square and Vornado Square Management, chaired by Steve Roth, snapped up large stakes. The company eventually put both men on its board.
Ackman resigned from the board after lashing out at other directors publicly. Roth is still on the board.
The plan, announced Thursday, can be put into effect if an individual or an entity acquired 10 percent or more of the company’s outstanding stock. In that case, existing shareholders can buy more shares at a very low price.