US: The Talbots deters takeover with “poison pill”
Women’s apparel retailer The Talbots has moved to defend itself against a potential takeover by adopting a “poison pill” stockholder rights plan.
The move comes a day after private equity group Sycamore Partners acquired a 9.9% stake in the US company, describing it as “undervalued and an attractive investment” in a regulatory filing.
Sycamore, which was established by retail investor Stefan Kaluzny, added in the filing that it intended to discuss the future of the company with its board, management and other stockholders.
Under the new stockholder rights plan, one common purchase right will be distributed on each outstanding share of the company’s common stock, with the rights becoming exercisable once any person or group acquires 10% or more of The Talbots’ shares.
The effect is to make acquisition of Talbots shares a far less tempting proposition for potential investors or someone looking to make a hostile takeover.
“The board of directors adopted the rights plan to promote fair and equal treatment of the company’s stockholders in light of a recent rapid accumulation of a significant percentage of the company’s outstanding common stock,” said The Talbots.
The company has been implementing a turnaround strategy following a period of under-performance, and returned to profit in its first quarter.
Kaluzny was previously managing director of Golden Gate Capital, the private equity group which bought the J Jill brand from The Talbots in 2009.
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