Dallas, Texas 08/23/2013 (Financialstrend) – It had recently been announced that the board of directors of J.C. Penney Company, Inc. (NYSE:JCP) had adopted the Poison Pill which is to last for one year. This Pill is a shareholder rights plan according to which it would not be possible for any new investor to gain control of the company. This adoption of Poison Pill by the company had been taken up after the largest investor of its shares, William Ackman had announced that he might his stake in the company in the near future. Further, this plan is also designed to provide for the dilution of value of the stock through the process of flooding the market with additional shares of the company. This process would make the company to be highly expensive for any investor to take hold of its shares.
However, J.C. Penney Company, Inc. (NYSE:JCP) had reported that this adoption of the poison pill was not made as an attempt to curb the attempt of any investor to acquire control of the company. Ackman had recently stepped down from the board of the company in line with a public spat on the choice of CEO to the company.
J.C. Penney Company, Inc. (NYSE:JCP) had on Thursday moved on to report a closing price for the day at $13.20 per share and had thereby presented a loss of 0.98% over the previous closure. The stock had further been presenting price movements during the day to vary from low of $13.03 per share to high of $13.45 per share, while the stock presently has its low price for the year at $12.34 and peak price at $32.55 per share. There are 220.40 million shares of the company being traded out in the markets in total and the institutional holdings contribute around 101% of the total capital.