Papa John's board OK's 'poison pill' to prevent founder from gaining control
Papa Johns International Inc.s board members voted to adopt a poison pill on Sunday to prevent its controversial founder from gaining a controlling interest in the pizza chain, according to people familiar with the matter.
The board, which is expected to announce the poison pill Monday morning, has been trying to sever ties with John Schnatter, who founded Papa Johns 34 years ago, following revelations that he used a racial slur during a recent conference call.
Schnatter owns 29% of Papa Johns PZZA, +1.16% shares and has indicated that he wont cede control of the company without a fight.
Boards can adopt shareholder-rights plans, commonly known as poison pills, to block an investor from accumulating a majority stake in a company a defensive move intended to thwart a hostile takeover. They are usually employed to block activist shareholders from gaining more control.
https://www.marketwatch.com/story/papa-johns-board-oks-poison-pill-to-prevent-founder-from-gaining-control-2018-07-22
Looks as if the BoD knows this guy is now poisonous to the future fortune of the company.