Papa John’s Board Plans to Discuss 'Poison Pill,' WSJ Says

(Bloomberg) -- Papa John International Inc.’s board is planning to discuss and possibly vote Sunday on whether to adopt a “poison pill” aimed at preventing founder John Schnatter from gaining a controlling interest, the Wall Street Journal reported, citing people familiar with the matter.

A company spokesman wasn’t immediately available to comment. A spokesman for Schnatter declined to comment.

Papa John’s Board Plans to Discuss 'Poison Pill,' WSJ Says

Last week, the pizza chain’s board put further distance between the company and its outspoken founder over his use of a racial slur, agreeing to review all ties to him, evict him from the headquarters and remove him from all marketing materials.

A special committee of independent directors ordered the termination of a so-called founder’s agreement that designated Schnatter as the brand’s face and voice and is requesting he cease media appearances on behalf of the firm, the company said in a statement after a Sunday night board meeting.

Though Schnatter resigned as chairman this month and no longer holds a formal management role, he remains on the board and owns about 30 percent of the company’s shares.

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