Less than four months after shareholders voted decisively to shelve their previous poison pill, the directors of Cracker Barrel Old Country Store have adopted another shareholder rights plan that seeks to limit to 20 percent an individual investor's holdings.
Cracker Barrel President and CEO Sandy Cochran says the new poison pill will help shareholders other than Steak 'N Shake owner Sardar Biglari, who has been a busy buyer of Cracker Barrel shares since last spring, receive an appropriate premium in the event of a takeover.
"This new rights plan has a 20 percent triggering threshold that is fully consistent with the guidelines of Institutional Shareholder Services and that we believe contains the attributes looked for by most leading institutional investors," Cochran said in a statement.
Investors will get to vote on the new plan at their annual meeting in December. Late last year, they voted down by a margin of more than two to one a proposal to extend the previous poison pill.
The company's announcement comes a day after Biglari filed papers with the Securities and Exchange Commission saying he spent another $3.8 million late last week to increase his Cracker Barrel stake to 16.6 percent. Biglari has spent more than $60 million so far this year.
Shares of Cracker Barrel (Ticker: CBRL) were flat around $55.35 in Tuesday mid-morning trading. Year to date, they're up almost 10 percent.
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- COOKE, ETHEN LANYARD TRUSTEE; COOKE, ETHEN LEWIS ESTATE
- JACOBS, JESSICA ALEXANDRA; JACOBS, ERIKA BESS