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Global Net Lease adopts poison pill plan

Global Net Lease’s (NYSE:GNL) board approves a short-term stockholder rights plan (also known as a “poison pill”) to discourage a hostile takeover of the company.

As stocks fall, a number of other companies have adopted stockholder rights plans in efforts to dissuade a company or person from acquiring the company at a cheap price.

GNL’s shares have fallen about 35% in the past three months, that’s slightly steeper than the 33% declined for the real estate sector’s median performance.

GNL says its plan is designed to reduce the likelihood that any person or group would gain control of GNL through open market accumulation of stock by imposing significant penalties upon any person or group that acquires 4.9% or its stock without the approval of the board. 

The plan expires April 8, 2021.

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