Papa Johns International
Board members plan to discuss it on Sunday morning and possibly vote on whether to adopt a "poison pill" to prevent the controversial founder from joining The Pizza Is Involved (1
who founded Papa John 34 years ago after recently receiving a racist denigration during a conference call.
Mr. Schnatter owns 29% of the shares of Papa John and has indicated that he will not give up control of the company without a fight.
The Boards may adopt shareholder rights plans, commonly known as poison pills, to prevent an investor from accumulating a majority stake in a firm – a defensive move that is designed to prevent a hostile takeover. They are usually used to prevent activist shareholders from gaining more control.
A company spokesman was not ready to comment immediately on Saturday.
Mr. Schnatter used the N word in May during a conference call with his marketing agency to prepare him for his return as company spokesman. He publicly apologized for his use of the word and agreed to resign as Chief Executive Officer earlier this month, but said he had since made his decision the second guess. He said in a letter to the board last week that he was not a racist and did not use the word as a racial epithet.
Papa John's board voted last Sunday to end some of his ties to Mr. Schnatter, including One that allows him to use an office at the company's headquarters in Louisville, Kentucky. The lawyers of Mr. Schnatter deny the termination of these agreements.
The company has also suggested to Mr. Schnatter to resign from the board, after known people the matter.
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Last year, he took a poison pill to stop his biggest shareholder, a hedge fund, from increasing his influence on the company. Other companies that have accepted poison pills in recent years include
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