Alco Stores Fends Off Activist Investor With Poison Pill

Law360, New York (May 7, 2013, 5:44 PM EDT) -- Alco Stores Inc., a Texas-based discount retailer with a market value of just $30 million, said Monday it has adopted a poison pill, likely in response to activist investor Michael Price, showing the defensive tactic isn't just for big companies.

The three-year shareholder rights plan prevents any investor from accumulating more than 15 percent of Alco's shares. If someone tries, existing shareholders will be entitled to buy additional shares at 50 percent of market value.

The company — which recently announced the relocation of its headquarters...
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