LOUISVILLE Ky. Taco Bell parent Yum! Brands Inc. said it will scrap its so-called poison-pill defense against a takeover, a move described by the company as an enhancement of its corporate-government policies.
Yum! said it would also modify its standards for the approval of uncontested board nominees to accept a simple majority of shareholder votes, instead of a super-majority.
Under the changes approved by the board, the poison-pill provision of the company's shareholders rights plan will automatically expires as of close of the business day on March 1.
The company did not disclose the specifics of its poison-pill defense. Typically the measures entail a release of additional stock shares, making it more difficult for an unwanted suitor to amass a controlling stake.
Yum!, based here, franchises or operates 34,000 quick-service restaurants. In addition to Taco Bell, its brands include KFC, Taco Bell, Long John Silver's and A&W.