Bill Ackman Aggressively Accumulates J. C. Penney (JCP), Becomes Largest Holder
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Shares of J. C. Penney (NYSE: JCP) are moving higher in early trade after activist investor Bill Ackman showed a new 16.5 percent stake in the retailer through his Pershing Square Capital hedge fund. This is the first time the world is learning of the stake, as his fund did not show a stake in the company at the quarter ended June 30, 2010.
Ackman is in partnership with Vornado (NYSE: VNO), the large REIT.
Shares are up 5.6 percent to $33.43 and have traded as high as $33.54.
Ackman's hedge fund has been accumulating shares and call options since mid-August.
In a pretty standard filing, Ackman indicated that he expects to engage in discussions with management, the board, other stockholders of the company.
Ackman spent $$903,093,762 to gain control of the 39,075,771 shares, which includes 4,156,700 shares of Common Stock underlying listed American-style call options exercisable through dates ranging from May 21, 2011 to January 21, 2012.
Retailer Target (NYSE: TGT) is another large holding of Ackman, where he owns 2.9%, so naturally speculation could emerge suggesting he could try to get the two companies together.
Another questions that could come up is 'Where did Ackman get the nearly $1 billion for the new JCP stake?" Ackman has had a good year, while others have hedge funds have been floundering. But has he raised an additional $1 billion? Did he sell anything to get the funds?
Ackman is in partnership with Vornado (NYSE: VNO), the large REIT.
Shares are up 5.6 percent to $33.43 and have traded as high as $33.54.
Ackman's hedge fund has been accumulating shares and call options since mid-August.
In a pretty standard filing, Ackman indicated that he expects to engage in discussions with management, the board, other stockholders of the company.
Ackman spent $$903,093,762 to gain control of the 39,075,771 shares, which includes 4,156,700 shares of Common Stock underlying listed American-style call options exercisable through dates ranging from May 21, 2011 to January 21, 2012.
Retailer Target (NYSE: TGT) is another large holding of Ackman, where he owns 2.9%, so naturally speculation could emerge suggesting he could try to get the two companies together.
Another questions that could come up is 'Where did Ackman get the nearly $1 billion for the new JCP stake?" Ackman has had a good year, while others have hedge funds have been floundering. But has he raised an additional $1 billion? Did he sell anything to get the funds?
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