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J.C. Penney adopts poison-pill defense after disappointing earnings
J.C. Penney adopts poison-pill defense after disappointing earnings

J.C. Penney Co. is girding itself against wannabe corporate raiders, adopting a shareholder rights plan known as a poison pill after reporting yet another quarter of dismal earnings. The tactic attempts to fend off hostile acquisitions by making it exorbitantly expensive for an individual or entity unapproved by the company’s board to gain a controlling stake. Netflix, Cracker Barrel and other businesses have used the defense in recent years. In J.C. Penney’s case, the maneuver will be in place for a year to “protect against any potential future use of coercive or abusive takeover techniques,” the struggling retailer said Thursday. But the Plano, Texas, company,...

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