Carter’s adopts poison pill after RWWM builds 16.86% stake

Published 24/09/2025, 11:28
© Reuters.

Investing.com -- Carter’s Inc. has implemented a stockholder rights plan, commonly known as a poison pill, after investment firm RWWM accumulated a 16.86% stake in the children’s apparel retailer without prior notification.

The limited duration stockholder rights agreement, which will expire on September 21, 2026, aims to prevent any entity from gaining control of Carter’s through open market purchases without paying all stockholders an appropriate control premium.

Carter’s stated that RWWM did not provide advance notice of its stock accumulation and has not responded to the company’s attempts to establish communication.

Under the terms of the agreement, if any person or group acquires beneficial ownership of 15% or more of Carter’s outstanding common shares, the board may exchange each right for one share of Carter’s common stock.

Shares of Carter’s were down approximately 0.8% in premarket trading on Wednesday.

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