Ackman Wins For Losing In Target (TGT)
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Pershing Square's Bill Ackman worked very hard and diligently to earn a seat on Target's (NYSE: TGT) board. Ackman wanted Target to expands it board to 13 and he wanted 5 of his nominees to be placed on the board. Although, proxy firm, RiskMetrics, agreed with Ackman that at least two of his appointees should be allowed on the board, 75% of shareholders voted in favor of Target and Ackman was left disappointed.
However, all is not loss, since Ackman filed a 13D on February 26th to discuss Board seats, Target's stock risen an astounding 42% while the S&P rose 16%. This perhaps shows that investors like knowing that there is a concerned and smart investor involved with the company who is solely focused on increasing shareholder value.
Though, it appears investors may have tired of Ackman as he often appeared on television multiple times of day during the month of May. Additionally, Ackman and Target publicly sparred by issuing several letters arguing their particular points. In May, shares of Target are down 6% while the S&P is up 2%.
Bill Ackman gave a speech at yesterday's annual meeting (think Gordon Gekko in Wall Street) and quoted luminaries such as John F. Kennedy and Martin Luther King. The NY Post reported that Ackman was so passionate in his beliefs that he choked up with tears as he quoted JFK about pursuing what one believes is right.
Ackman did say that companies will now be more open to considering new board members to avoid fights like the one he had with Target. "I guarantee you that every S&P 500 company is going to take a very close look at their nominating practices, as a result of what happened to Target," Ackman told Minnesota Public Radio.
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