Kohl’s says that recent offers to purchase the department store chain undervalue its business and said it’s adopting a shareholder rights plan to head off any hostile takeovers.
The shareholder rights plan, which is effective immediately and is known as a “poison pill,” is set to expire on Feb. 2, 2023, the company said Friday.
“We have a high degree of confidence in Kohl’s transformational strategy, and we expect that its continued execution will result in significant value creation,” said Kohl’s Chairman Frank Sica in a statement. “The board is committed to acting in the best interest of shareholders and will continue to closely evaluate any opportunities to create value.”
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The move comes as Kohl’s has received multiple buyout offers in recent weeks. Private equity firm Sycamore Partners had reportedly approached Kohl’s about a potential deal last month. A group called Acacia Research, backed by activist hedge fund Starboard Value LP, bid $64 per share, or about $9 billion.
At the time Kohl’s Corp., based in Menomonee Falls, Wisconsin, said that its board was reviewing the offers.