(Adds background, shares)
March 28 Rent-A-Center Inc said on
Tuesday it adopted a stockholder rights plan, or a so-called
"poison pill", a month after activist investor Engaged Capital
LLC stepped up efforts to push the furniture retailer to sell
Engaged Capital, which owns a 12.9 percent stake in
Rent-A-Center, last month nominated five candidates for election
to the retailer's board of directors.
Plano, Texas-based Rent-A-Center said the stockholder rights
would become exercisable if group buys 15 percent or more of its
Rent-A-Center, which has struggled with declining sales for
over a year, said last month it would seek to cut costs and
boost revenue after Engaged Capital heaped pressure on the
retailer to explore a sale.
However, the activist fund disapproved Rent-A-Center's
"risky" turnaround strategy and urged the company's board to
consider other options.
Rent-A-Center's shares were largely unchanged in early
trading on Tuesday.
(Reporting by Gayathree Ganesan and Sruthi Shankar in
Bengaluru; Editing by Sai Sachin Ravikumar)