Target board orders new poison pill

Staff -- Home Textiles Today, 9/19/2001 12:00:00 AM

Minneapolis — The board of directors of Target Corp. has adopted a shareholder rights plan to protect the company against a potential hostile takeover.

The new plan is substantially the same as an older protection package that expires on Sept. 26, and the company said it's designed to protect the rights of the company's 15,000 shareholders in the event of an unsolicited takeover attempt. The company said the new plan was not put in place in response to any present effort to acquire Target.

The new plan discourages a potential takeover by granting current shareholders the right to acquire a form of preferred shares if any third party accumulates 20 percent or more of the retailer's common stock. Once that trigger is reached, a current shareholder would be able to buy $250 of Target stock for $125.