Anti-Takeover Plan Is Adopted by Clothestime
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Clothestime Inc., an Anaheim-based retail chain, said Friday that its board had adopted a “poison pill” plan to fend off unwanted takeovers.
The company said that, to its knowledge, no one is trying to acquire it and the move isn’t in response to a takeover bid.
Under the new plan, shareholders would get a right to buy one share of stock for every outstanding share they already own.
The rights can’t be exercised unless 20% or more of the company is acquired. Should that happen, each right entitles shareholders to buy more shares at a discount.
The purpose of the plan is to make the company impossibly expensive to take over.
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