Nordstrom adopts ‘poison pill’ days after Mexican peer buys stake

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FILE PHOTO: A Nordstrom store is pictured in New York

(Reuters) -Nordstrom Inc has adopted a “poison pill” to prevent investors from amassing 10% or more of its shares, the company said on Tuesday, just days after a Mexican retailer built a stake in the luxury department store chain.

Nordstrom said the shareholder rights plan, which will expire in September next year, has not been adopted in response to any specific takeover bid and is not intended to deter buyout offers.

Last week, Mexican department store chain Liverpool disclosed a 9.9% passive stake in Nordstrom, in a bid to diversify its geographic foothold.

Liverpool is currently the second-biggest shareholder, behind former Chairman Bruce Nordstrom, according to Refinitiv.

Other members of Nordstrom’s founding family, including Chief Executive Officer Erik Nordstrom and President Peter Nordstrom, are also among its top shareholders.

Poison pills make a takeover more expensive or difficult by allowing existing shareholders to buy shares at a discount, diluting a suitor’s ownership stake.

Nordstrom last month joined department store peers Macy’s Inc and Kohl’s Corp in slashing its annual earnings forecast, reeling under an inventory glut that has forced retailers to offer steep discounts amid a slump in demand.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta and Anil D’Silva)