Vornado (VNO) Looks to Unload Massive JCPenney (JCP) Stake as Losses Become Too Much

According to reports late Monday, Vornado (NYSE: VNO) has decided to exit a substantial portion of its massive stake in JCPenney (NYSE: JCP).

Deutsche Bank is said to be shopping a 10 million block of stock held by Vornado, Reuters noted. CNBC said the asked price was $16.40 to $16.60 per share, versus a closing price of $16.74 on Monday.

Notably, Vornado chairman Steven Roth sits on the board of JCPenney.

Vornado reported holding 18.6 million shares of JCPenney at the end of fourth-quarter 2012, with an average purchase price of $25.76 per share. The firm has an option to purchase an additional 4.8 million JCPenney shares for $29.10 each.

Vornado took a $224.9 million non-cash charge on the position with its latest quarterly report.

Shares of JCPenney are down about three percent Tuesday morning. The stock is down just over 15 percent in 2013.

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