The shareholder protection plan is a device to make a takeover by an outside firm more expensive and less likely by requiring any buyer to in effect pay shareholders double the sale value. The share price had gotten so low they were worried about someone taking over and liquidating assets.
You can also think of it as a senior management job protection program.

In other on topic news and speculation:

The recent HP/WebOS news is bad for Kodak, as more patents will be up for sale that pertain to the mobile space. Palm's patent portfolio was very strong.

Also bad news: Kodak talking about their patent sale and spreading news to the WSJ that there is already one major player very interested in buying the patents. Methinks the sale isn't going well.