Talbot’s Preps Poison Pill

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To avert an investor takeover, Talbot's is prepping a poison pill.

A Massachusetts-based retailer with outposts in New Hampshire is trying to stave off an investor takeover.  An AP piece published by The Boston Globe lays out Talbot’s strategy to maintain status quo and hold off Sycamore Partners, LP (and by extension, investor Stefan Kaluzny).  The name of the play has a desperately grotesque ring: poison pill.

“A poison pill, or a shareholder rights plan, is a strategic move by the target of a takeover to make its stock less attractive to the potential buyer. The Talbots plan calls for one common stock purchase right to be distributed as a dividend on each outstanding share of the company’s common stock.

The rights become exercisable if any person or group acquires 10 percent or more of Talbots common stock, or if holders that currently own 10 percent or more buy a specified number of additional shares. The rights will expire on Aug. 1, 2021.”

According to the corporate website, Talbot’s maintains four regular retail stores and one outlet in New Hampshire.