Papa John's board of directors considers the "poison pill" to block the takeover by its founder

The board of directors of pizza chain Papa John's is considering a move to prevent founder John Schnatter from regaining control of the company.

As reported by the Wall Street Journal council may vote Sunday. shareholder rights plan, or so-called "poison pill" provision. Although these provisions vary in detail, they are fundamentally designed to prevent hostile takeovers by diluting inventories.

Schnatter, according to the Journal currently holds 29% of the pizza chain that he founded. a sole shareholder and put him in a position to take a majority stake and regain control of the company.

This could greatly aggravate the damage already inflicted by Schnatter in a series of controversies over the past year. Schnatter resigned from his position as CEO in late 2017, after critical comments on how the NFL handled the national anthem events. The comments probably contributed to the end of an important sponsorship of Papa John with the league. A list of other leagues and teams followed in cutting ties with the company.

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In his future controversies, Schnatter, while trying to argue that it does not matter. is not a racist, used a racial epithet and told an anecdote that others have described as offensive. Following this call, Schnatter resigned as president and, early last week, Papa John's board of directors removed him from the offices he was renting at the company's headquarters. the company

. , and kept a high profile lawyer. With this in mind, a measure of the board to prevent it from regaining control of the property may be in the best interest of the other shareholders – partly thanks to Schnatter's controversial series, the stock of Papa John is currently in 17% decrease since early November 2017.