Tags: Talbots Adopts Plan to Make Hostile Takeover Harder

Talbots Adopts Plan to Make Hostile Takeover Harder

Tuesday, 02 Aug 2011 10:46 AM

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.

© 2015 Thomson/Reuters. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved