Comments from Pershing Square's Bill Ackman On Target (TGT)

Target (NYSE: TGT) will set up TIP REIT, which will get the land and the facilities management business. The TIP REIT will get spun off to shareholders. Ackman said Target transaction will not require access to capital markets because it is a spin off.

For the first 2 years post-transaction, TIP REIT will be Target's exclusive land developer. Therefore, TIP REIT will become Target's preferred vendor for future land procurement/development needs.

Target will have the right to re-model or tear down and rebuild stores as it sees fit.

Post separation, Target Corp and TIP REIT will continue to be closely aligned, but on an arm's-length basis.

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