J.C. Penney Company has adopted the poison pill plan voted by the company's board of directors. This plan is put into place to prevent shareholders from adding to their stake in the company once they are over the 10% threshold. Bill Ackman and Vornado Reality Trust have been accumulated large ammounts of stock recently which triggered the board of directors to act in order to prevent any takeover.
The rights plan entitles each holder to purchase a fraction of a share of JCPenney at an exercise price of $130.00 per right. The rights become exercisable if any person or group acquires 10% or more of JCPenney's common stock. The rights are set to expire on October 14, 2011.
JCPenney is a holding company whose principal operating subsidiary is J.C. Penney Corporation which is a large North American retailer.
