Saks Inc. (SKS) on Wednesday adopted a poison-pill strategy to avoid takeover after Mexican billionaire Carlos Slim Helu reported a nearly 18% stake in the company.
If any stockholder buys 20% of more of the company, the poison-pill plan gives other shareholders the right to buy additional shares at a 50% discount, among other things.
Saks’ Securities and Exchange Commission filing said it would “impose a significant penalty upon any person or group which acquires beneficial ownership of 20% or more of the Company's outstanding common stock without the prior approval of the Board of Directors.”
Slim reported in a SEC filing last week that he now owns more than 25 million shares in Saks. His fortune comes mainly from his ownership of Latin American telecommunications companies.
Saks spokeswoman Julia Bentley declined to comment on the timing of the announcement to The Wall Street Journal, but she told the paper that Saks had a rights plan for more than a decade that expired in March 2008.
Saks shares were recently trading at $4.20, up 5%. According to Reuters, Slim picked up 1.5 million shares for between $2.76 and $3, so he appears already to be in the black with the investment.
GM Warns GMAC May Fail
Report: VeraSun to File for Bankruptcy Protection
Wachovia, suitors put lawsuit on hold
Ex-CCA chief executive sued by old business partner
