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

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of