Global Net Lease, a REIT, has approved a plan to adopt a poison pill provision which is intended to protect the company from a hostile takeover.
“GNL’s Plan is designed to reduce the likelihood that any person or group (including a group of persons that are acting in concert with each other) would gain control of GNL through open market accumulation of stock by imposing significant penalties upon any person or group that acquires 4.9% or more of the outstanding shares of the Common Stock without the approval of the Board.”
Global Net Lease press release.
The move comes during a rise in the adoption of similar provisions by companies who have seen their stock price drop precipitously due to COVID-19 and are seeking extra protection.