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2d ago

Victoria's Secret Adopts Poison Pill to Counter Potential Takeover by BBRC

The move comes as BBRC International nears a regulatory milestone allowing it to expand its stake in the company up to 49.99%.

People pass a window display at a branch of Victoria's Secret in New Bond Street in London, Britain, March 31, 2021. REUTERS/Toby Melville/File Photo
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Overview

  • Victoria's Secret has implemented a one-year shareholder rights plan to prevent any investor from acquiring control without offering a fair premium to shareholders.
  • The rights plan, effective May 20, will issue one right per share on May 29, triggered if any shareholder's stake exceeds 15%.
  • BBRC International, controlled by Australian billionaire Brett Blundy, currently holds a 13% stake in Victoria's Secret and has a history of acquiring controlling interests in retail brands.
  • BBRC previously violated U.S. antitrust rules by failing to file Hart-Scott-Rodino Act forms during its share accumulation, but it has since corrected its filings.
  • Once a regulatory waiting period ends on May 21, BBRC will be permitted to increase its stake up to 49.99%, intensifying the takeover defense dynamics.