Pershing Square Targets Target

Jul 16 2007 | 11:58am ET

Pershing Square Capital Management’s William Ackman apparently just can’t resist Target Corp.’s giant red bullseye logo.

Indeed, the New York-based activist hedge fund manager has the discount retailer in his sights, targeting it for its “undervalued” share price, according to a filing with the Securities and Exchange Commission.

Pershing Square, in a widely-expected move that drove Targets stock price up 7% last Thursday, said it has acquired 81.8 million shares of the Minneapolis-based company, amounting to a roughly 9.6% stake. The hedge fund began building its stake in April.

In spite of a 45% rise in its share price over the past year, Pershing Square said it viewed the stock as too cheap, and said it would “discuss with management ways in which this undervaluation can be corrected.” Ackman’s firm said it would seek talks with management regarding strategy, business, assets, operations, capitalization and financial condition, according to the filing.

Ackman added that he will donate much of any profit from his Target investment to his new Pershing Square Foundation, a charity launched last year focusing on education, health care and human rights.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...