Friday, 1 July 2016
Last updated 10 hours ago
Oct 1 2013 | 1:34pm ET
Perry Capital was one of Pershing Square Capital Management's few allies in its battle to reshape J.C. Penney Co. Now, the firm is joining its fellow New York-based hedge fund in exiting the struggling retailer.
Perry slashed its stake in Penney by nearly half, following Penney's announcement that it would seek to raise nearly $1 billion by selling new shares, a move that will dilute existing shareholders. Perry had built up an 8.6% stake in Penney, but cut that to just 3.3% between Friday and yesterday.
Perry was among Pershing Square founder William Ackman's only allies in his bid to force a quick replacement of Penney's interim CEO Myron Ullman and Chairman Thomas Engibous, writing in August that "shareholders and creditors have increasingly lost confidence in the company." The firm even added shares after Pershing Square dumped its entire Penney stake, following a dispute that led Ackman to resign from its board.
Penney shares are currently trading at their lowest price in more than 10 years.