Last Friday, CNBC broke news that investor Carl Icahn might have bought as many as 30 to 40 million shares in Hertz Global Holdings Inc.
After observing unusual and substantial activity in its shares, Hertz announced Dec. 30 that its board of directors adopted a one-year shareholder rights plan. This “poison pill” policy is aimed to reduce the likelihood that any person or group would gain control of Hertz through open market accumulation, according to Hertz.
Through the shareholder rights plan, Hertz is issuing one preferred share purchase for each current share of common stock by Jan. 9. The rights will be applicable after a person or group acquires 10% or more of Hertz’s stock, says Hertz.