Ackman’s Pershing Square Goes Cold Turkey on JCPenney

by Burke Speaker | August 27, 2013 9:45 am

The hedge fund that formerly had been the largest shareholder in JCPenney (JCP[1]) 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:[2]

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[3] while facing dismal quarterly losses.

Endnotes:
  1. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  2. From CNBC:: http://www.cnbc.com/id/100963218
  3. laying off some 2,200 workers: http://investorplace.com/2013/03/struggling-jcpenney-lays-off-2200-workers/

Source URL: http://investorplace.com/2013/08/ackmans-pershing-square-goes-cold-turkey-on-jcpenney/
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