Ackman’s Pershing Square Goes Cold Turkey on JCPenney

   

Ackman’s Pershing Square Goes Cold Turkey on JCPenney

The hedge fund that formerly had been the largest shareholder in JCPenney (JCP) has sold all of its shares in the retailer — yet another hit to the floundering company.

Bill Ackman’s Pershing Square sold the stock just two weeks after Ackman left the board over a leadership dispute.

From CNBC:

The hedge fund … own[ed] 39.1 million shares, or 18 percent of shares outstanding. Ackman’s fund bought the shares at about $25, which means it stands to lose about $470 million, or about half of his initial investment.

… Following the report, J.C. Penney shares dropped about 5 percent in after-hours trade before paring some losses.

Recently, tensions have been high between Ackman and the board, which clashed over the retailer’s future and a search to replace its CEO.

JCP has been up against a spate of financial challenges, most recently this past spring laying off some 2,200 workers while facing dismal quarterly losses.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/ackmans-pershing-square-goes-cold-turkey-on-jcpenney/.

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