J. C. Penney Board Adopts Stockholder Rights Plan - Quick Facts

(RTTNews) - Struggling retailer J. C. Penney Company Inc. (JCP) said Thursday that its Board has adopted one-year stockholder rights plan to protect against any potential future use of coercive or abusive takeover techniques and to help ensure that the company's stockholders are not deprived of the opportunity to realize the full and fair value of their investment.

The company said the plan was not adopted in response to any effort to acquire control of the Company. The plan will continue in effect until August 20, 2014, unless the rights are redeemed or exchanged for shares of common stock by the company on an earlier date.

In connection with the adoption of the stockholder rights plan, the company's board declared a dividend of one right for each share of the company's common stock held by stockholders of record as of the close of business on September 3, 2013. Initially, these rights will not be exercisable and will trade with the shares of the Company's common stock.

On Tuesday, the retailer reported that net loss for the second-quarter widened to $586 million or $2.66 per share from $147 million or $0.67 per share in the prior year. The latest results reflected a $0.99 per share loss associated with a tax valuation allowance, $0.52 per share loss on retirement of debt associated with the tender offer, a $0.21 per share restructuring and management transition charges and a $0.28 per share benefit on the net gain on the sale of a non-operating asset.