J.C. Penney lowers poison pill trigger to protect tax carryforwards

Tuesday, 28 Jan 2014 | 9:13 AM ET

Jan 28 (Reuters) - Struggling department store operator J.C. Penney Co Inc said it lowered the threshold for triggering a takeover defense plan to protect about $2 billion in future tax benefits.

The company said it was lowering the trigger on its poison pill to 4.9 percent from 10 percent, as any change in stock ownership of 5 percent or more could "substantially limit" the company's ability to use its net operating loss carryforwards under the tax code.

(Reporting by Siddharth Cavale in Bangalore; Editing by Saumyadeb Chakrabarty)

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