Goody's adopts poison pill. (acquisition of 10% or more of stock, Goody's Family Clothing Inc.) (Brief Article)

Daily News Record, October, 1994

KNOXVILLE, Tenn. (FNS) -- Goody's Family Clothing, Inc., reported Monday that it has adopted a poison pill, three weeks after its chief executive was removed for hinting that he might seek to take the retailer private.

Under the poison pill, the acquisition of 10 percent or more of the company's common stock will entitle shareholders to purchase additional shares of common stock at discounted prices. Such an action makes the purchase of the company prohibitively expensive.

Robert M. Goodfriend, the CEO on a leave of absence, owns 63.2 percent of Goody's shares. Any increase in ownership by Goodfriend of more than 1 percent will also trigger the poison pill.

Goody's board of directors said it reserves the ability to redeem the rights under...

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