JC Penney Beefs Up Poison Pill To Preserve $2B Tax Breaks

Law360, New York (January 28, 2014, 11:20 AM EST) -- J.C. Penney Co. Inc. on Tuesday tightened its defenses against an unsolicited takeover in a move meant to ensure that the sputtering retailer can use its steep losses to tap into about $2 billion in future tax breaks.

A reworked poison pill provision, meant to dilute the stock if a single shareholder buys too much, will kick in if any investor purchases more than 4.9 percent of the Texas company's shares. The new threshold falls below Internal Revenue Service standards for an ownership change, allowing J.C....
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