Pier 1 Imports Inc. shares rose more than 5% late Tuesday after the home-goods retailer said its board of directors adopted a shareholders’ agreement aimed at fending off unwanted takeovers. The agreement restricts people or groups from buying 10% or more of the company’s shares, the company said. Hedge fund firm Alden Global Capital LLC last week revealed a 9.5% stake in the retailer, saying that Pier 1, which is searching for a new CEO amid disappointing sales, was at a “critical juncture.” Pier 1’s board “feels it is important to ensure that all shareholders have the opportunity to realize the long-term value of the iconic Pier 1 Imports brand, and to guard against coercive or unfair tactics to gain control of the Company without paying all shareholders an appropriate premium,” Chairman Terry E. London said in the statement. The agreement will not prevent takeovers but may cause “substantial dilution,” which may render more difficult or block a merger that is not supported by the board, Pier 1 said. Shares ended the regular session up 1.7%.
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