Francesca’s shares pop after stockholder rights plan announced


Francesca’s Holdings Corp.

FRAN, +0.32%

shares jumped 5.2% in Friday premarket trading and opened up 1.6% after the retailer announced that it has adopted a stockholder rights plan, which aims to try to keep a person or group from taking control of the company. Stockholders are entitled to purchase one five-thousandth of a share of series A junior participating preferred stock if the rights can be exercised, which will generally happen 10 business days after a person or group owns 15% or more of outstanding common stock. The rights expire at the close of business August 1, 2022 unless they are redeemed earlier. Francesca’s stock has lost nearly 97% of its value over the past year while the S&P 500 index

SPX, -0.73%

is up 4.1% over the last 12 months.

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