Hertz Adopts Poison Pill

On Monday, Hertz announced that it was adopting a 1-year poison pill after "unusual and substantial activity" in the company's stock. All shareholders of record on January 9, 2014 will receive one preferred purchase right for each share of common stock owned, which will make any potential acquisition more expensive. The rights will become exercisable if 10 percent of Hertz is acquired by one person or group, or in the case of a passive institutional investor, 15 percent of Hertz common stock is acquired. Today, it became known that Carl Icahn had purchased 30 to 40 million shares of Hertz through stock and derivative investments.