Iconix Brand Group, the owner of Umbro, Candie's and several other brands, has adopted a short-term shareholder rights plan after a sharp decline in its share price in recent months. Sports Direct International (SDI), the British retailer, acquired indirect economic interests amounting to 14.4 percent in Iconix in the last weeks. The U.S. company said that the plan is meant to protect the interests of the company and its shareholders by reducing the likelihood that any person or group gains control of Iconix through open market accumulation or other tactics without paying an adequate premium. Under the plan, one preferred stock purchase right will be issued for each share held on Feb. 12. These rights will become exercisable if any entity acquires beneficial ownership of 20 percent or more of Iconix stock or equivalent derivatives – except for the rights held by the entity that triggers the plan, which would become void. Iconix added that it was making progress on its refinancing plans and working toward a resolution of questions raised by the Securities and Exchange Commission. SDI stated that its stake in Iconix and a smaller share in Dick's Sporting Goods was meant to build a relationship and develop commercial partnerships with the relevant parties, and to build relationships with key suppliers and brands. Iconix owns rights to sports-related brands such as Starter, Umbro, Ocean Pacific, Danskin and Pony. The plan is meant to expire after the company's annual shareholders meeting, unless extended.

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