Ackman Selling J.C. Penney Stake

Perishing Square Capital Management, the hedge fund founded by activist investor Bill Ackman, has announced that it will sell its entire 39 million-share stake in retailer J.C. Penney (NYSE: JCP  ) . Pershing Square owns about 18% of the company's total common shares, worth about $500 million at current prices. Citigroup will be the book-runner for the transaction.

The price for the offering has yet to be disclosed, but some outlets are reporting that the expected price will be between $12.50 and $12.90. J.C. Penney closed today at $13.35. Since Oct. 8, 2010, when Pershing's stake was first disclosed, the stock has fallen 51%.

Ackman served as a member on the company's board of directors beginning in February 2011, and he hand-picked former Apple and Target executive Ron Johnson to be CEO the following November. Ackman left his position on the board last week, nearly five months after Johnson was ousted. Ackman's departure followed very public disagreements with other board members surrounding the direction of the struggling retailer and the search for Johnson's replacement.

The announcement of the sale of the shares comes less than a week after Ackman sent a letter to investors saying he has made "mistakes" on bets with retailers and even stating that Pershing's investment in J.C. Penney could be categorized as a "failure," according to a report in The New York Times.

J.C. Penney's stock has dipped to approximately $13.00 per share in after-hours trading.

Editor's note: A previous version of the article contained incorrect information on when Ron Johnson stepped down as CEO and mischaracterized the monetary value of Pershing Square's investment in JCP.



Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2610519, ~/Articles/ArticleHandler.aspx, 9/30/2016 3:03:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
JCP $9.25 Down -0.30 -3.14%
J.C. Penney CAPS Rating: *