Plano, Texas – J.C. Penney Co. is amending its stockholder rights plan as part of move to protect its ability to use certain funds that can be used for tax benefits.
Penney said its shareholder rights plan can now be put into effect if an individual or group acquires 4.9% or more of its outstanding stock, down from its previous 10%.
The amended rights plan, which takes effect immediately, will continue in effect until Jan. 26, 2017, subject to earlier expiration in specific circumstances. Penney expects to submit the amended rights plan to a vote at the next annual meeting of stockholders in May 2014. If stockholders do not approve the amended rights plan, it will be terminated. The full text of the amended rights plan will be filed with the Securities and Exchange Commission.