Papa John's attempts to ward off founder with poison pill
LOUISVILLE, Ky. (AP) - Papa John's is attempting to ward off its disgraced founder by adopting a poison-pill plan.
Founder John Schnatter resigned as chairman this month after his use of a racial slur during a media training session was revealed. He stepped down late last year as CEO after becoming enmeshed in the national anthem issue involving players, saying it was hurting sales.
Schnatter, who later said his resignation was a mistake, is still the pizza chain's biggest shareholder, holding just short of 30 percent of all stock. The company, based in Louisville, Kentucky, said late Sunday it will put its shareholder rights plan in place for a year.
The plan would be activated if anyone acquires 15 percent or more of the company's outstanding shares without board approval.