The Wall Street Journal-20080205-CSK Auto Corp-- Poison-Pill Provision Adopted After Offer

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CSK Auto Corp.: Poison-Pill Provision Adopted After Offer

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CSK Auto Corp. adopted a so-called poison-pill antitakeover provision, a move the auto-parts retailer said it made to keep its continuing strategic review from getting disrupted by an unsolicited offer from rival O'Reilly Automotive Inc. Under CSK's plan, any party that reached a 10% ownership threshold would immediately see its stake diluted, essentially blocking a bid. CSK said 20 companies have been given "access to information about the company so that they can develop strategic alternatives for the board's consideration," adding that O'Reilly "has chosen not to participate in the process." Phoenix- based CSK has been under pressure from a major shareholder, Karsch Capital Management LP, to put itself up for sale. O'Reilly said it took the offer public after not being able to "move forward" in talks with CSK Auto.