Perry Backs Pershing Square On Penney's

Aug 12 2013 | 12:30pm ET

Pershing Square Capital Management's William Ackman has won a much-needed ally in his battle with J.C. Penney Co., as the retailer's board considers taking action against him in the wake of his public call for the ouster of both its chairman and interim CEO.

Hedge fund Perry Capital on Friday announced that it had taken a 7.3% stake in Penney's and pushed the company to overhaul its management. The news comes on the same day that Ackman, who sits on Penney's board and whose hedge fund owns 18% of the company, demanded a fast-track process to replace CEO Myron Ullman and said that he had found a replacement for Chairman Thomas Engibous, former Penney's CEO Allen Questrom.

Perry said in a letter Friday to the Penney's board that he supports Ackman's push for Questrom, and that it should hire Foot Locker CEO Ken Hicks as its next chief.

The rest of the Penney's board is furious at Ackman, who handpicked the company’s last CEO, former Apple Inc. marketing executive Ron Johnson, who proved a failure. Engibous called Ackman's moves "disruptive and counterproductive."

The board is considering taking action against its fellow director, meeting by phone yesterday afternoon. Ackman's actions have made him a "rogue" director, the board believes, but it is unclear they can do anything about it.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.