Summary Box: JC Penney implements 'poison pill'

AP News
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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.

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