Summary Box: JC Penney implements 'poison pill'

AP News
Posted: Oct 18, 2010 1:39 PM
Summary Box: JC Penney implements 'poison pill'

Department store operator J.C. Penney Co. Inc. is implementing a one-year "poison pill" on the heels of activist investor William Ackman's recent purchase of a large number of shares.

DEFENSIVE STANCE: A poison pill helps fight against takeovers by diluting the holdings of the would-be acquirer. J.C. Penney said it established the plan because of recent stock purchases and to ensure fair treatment of stockholders, an obvious reference to Ackman's actions.

Eyes On The Prizefighters
Ann Coulter

ACKMAN'S OPINION: In a recent SEC filing, the investor said he believed J.C. Penney's stock was undervalued.