Pershing to Sell Entire Stake in J.C. Penney
According to a filing, J.C. Penney announced an offering to sell the common stock held by Bill Ackman’s Pershing Square Capital management that account for over 39 million shares or about 18% of the company’s shares outstanding. Under the registration agreement, Pershing can start selling blocks of the stock four times a year. According to the filing, Citigroup was hired by Pershing to underwrite the sale.
In a related story, Bloomberg notes that the stake sale coincides with Ackman’s agreement earlier this month to quit the board of J.C. Penney after a public clash over its direction and management succession.
According to data compiled by Bloomberg, if Pershing sold its stake in the retailer at today’s closing price, the fund would take a loss of $490 million. Bloomberg said the stock has declined 32% this year compared to a gain of 16% for the S&P 500 index.
To read the entire Bloomberg story click here.
Previously on abfjournal: J.C. Penney Q2 Loss Widens, Sales Fall 14%, August 21, 2013