JC Penney Adopts Poison Pill To Ward Off Takeover

Law360, New York (October 18, 2010, 4:22 PM EDT) -- On the heels of revelations that a hedge fund controlled by William A. Ackman has been buying up shares of J.C. Penney Co. Inc., the company's board on Monday introduced a shareholder rights plan in an effort to fend off a takeover.

The board's decision to adopt a short-term shareholder rights plan followed the disclosure by Ackman's firm Pershing Square Capital Management LP in a Sept. 28 regulatory filing that it had acquired a 16.5 percent stake in the retail chain.

Soon after that disclosure, on...
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