Christopher & Banks Corp. is standing its ground and adopted a poison pill to ward off a takeover.
This story first appeared in the July 9, 2012 issue of WWD. Subscribe Today.
Hedge fund Aria Partners, which already owns 4 percent of Christopher & Banks, offered on Tuesday to buy out other stockholders for $1.75 a share, valuing the 658-door chain at $64 million.
The retailer’s board nixed that offer Friday and said it was committed to its strategic plan that includes reducing the number of stockkeeping units carried, sharpening opening prices, improving inventory flow and developing a program to transition to fewer storewide sales and more targeted promotions.
The company’s board also adopted a stockholder rights plan that is “designed to deter coercive or unfair takeover tactics, including the accumulation of shares in the open market or through private transactions and to prevent an acquirer from gaining control of the company without offering a fair and adequate price.”
The rights plan is triggered if somebody gains beneficial ownership of 15 percent of the company’s stock. It allows the other shareholders to purchase preferred stock that would make a takeover more expensive.
Shares of the company, which jumped 19.8 percent when the offer was made public, fell 8.7 percent, or 13 cents, to $1.36 Friday.