Penney adopts plan to prevent takeover

PLANO, Texas — Struggling retailer J.C. Penney is adopting a plan to prevent a takeover attempt after reporting its sixth straight quarter of big losses.

It’s the second time in recent years that the company has put in place a socalled “poison pill” plan. It said there is no current takeover attempt.

In October 2010 J.C. Penney enacted the defense after activist investor William Ackman of Pershing Square and Vornado Square Management, chaired by Steve Roth, snapped up large stakes.

The company eventually put both men on its board, a decision that ended badly last week.

Ackman resigned from the board after lashing out at other directors. The two sides hammered out an agreement that will let Ackman unload his shares. Roth is still on the board.

The plan announced Thursday can be put into effect if an individual or an entity acquires 10 percent or more of the company’s outstanding stock. The corporate defense strategy lets existing shareholders buy more shares at a very low price if that occurs.

The retailer is trying to survive a botched turnaround strategy by ousted CEO Ron Johnson. It brought Mike Ullman to the top post in April, after he held the job from 2004 to 2011. He has brought back coupons, frequent sales and basic merchandise Johnson eliminated in an effort to attract hipper, more affluent shoppers.