If Sardar Biglari wants to control Cracker Barrel Old Country Store Inc., he’ll first have to get past the Southern-style restaurant chain’s new "poison pill" defense.
Board members of the Tennessee-based company approved a shareholder rights plan to try to obstruct investor Biglari’s hostile takeover efforts.
The strategy would prevent Biglari, who recently raised his stake in Cracker Barrel to more than 16%, from accumulating 20% without offering shareholders a premium. To do so would water down the value of his shares.
“The shareholder rights plan is designed...