Talbots Adopts Plan to Make Hostile Takeover Harder

Tuesday, 02 Aug 2011 10:46 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Women's retailer Talbots adopted a "poison pill" stockholder rights plan, a day after a media report said a New York-based private equity firm was considering buying the company.

The rights plan lets Talbots issue shares at a discount to all other shareholders if a single investor buy a stake higher than 10 percent. A rights plan makes it harder for a suitor to mount a hostile takeover due to the resultant dilution of the stock.

Talbots said its board adopted the rights plan to "promote fair and equal treatment of its stockholders in light of a recent rapid accumulation of a significant percentage of the company's outstanding common stock."

On Monday, the Wall Street Journal reported that private equity firm Sycamore Partners' co-founder is considering the possibility of buying Talbots, citing sources.

Sycamore, started by retail industry veteran Stefan Kaluzny, had reported a 9.90 percent stake in the company.

Talbots shares closed at $4.07 on Monday on the New York Stock Exchange.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved