Shares of Nordstrom Inc. slipped 0.3% in premarket trading Tuesday, after the higher-end department store chain said it adopted a shareholder rights plan, also known as a “poison pill,” that is effective immediately and lasts for one year. Nordstrom said the rights plan, which becomes exercisable if a person or entity acquires 10% or more of the shares outstanding, has not been adopted in response to any specific takeover bid or other bid to take control of the company, and was not adopted to block offers that are deemed “fair.” The plan was adopted after the stock has tumbled 19.7% over the past three months, while the SPDR S&P Retail ETF has gained 4.0% and the S&P 500 has advanced 6.1%. “The Rights Plan is similar to plans adopted by other public companies and is intended to protect the interests of the company and all Nordstrom shareholders by reducing the likelihood that any entity, person or group gains control of Nordstrom through open-market accumulation or other means without payment of an adequate control premium,” the company said in a statement.
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