Vera Bradley jumps after adopting shareholder rights plan

Vera Bradley disclosed that its board adopted a shareholder rights plan and declared a dividend of one right in respect of each of the company’s issued and outstanding shares of common stock. The dividend is payable to the shareholders of record at the close of business on October 21. The rights agreement “imposes significant dilution” upon any person or group that is or becomes the beneficial owner of 15% or more of the company’s outstanding shares without the prior approval of the board. Shares of Vera Bradley are up 7% to $5.52 in after-hours trading following the news.