Sat, Oct 22, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bill Ackman gives up on JC Penney

Tuesday, August 27, 2013

Bill Ackman
Precy Dumlao, Opalesque Asia:

Beleaguered activist hedge fund manager William Ackman sold his entire holdings in U.S. retailer J.C. Penney Co Inc., after his effort to overhaul its management failed, Reuters reported.

Ackman's $11bn Pershing Square Capital Management, the largest shareholder in J.C. Penney, sold to 39.1 million shares, equivalent to 18% the firm to Citigroup Inc., which is now offering the shares to prospective investors.

The sale also ended Ackman’s three year campaign to bring the retailer back to profitability by hiring a new chief executive, upgrading its merchandize and simplifying pricing to make the stores more attractive to customers.

But the reorganization did not translate into earnings as store sales plunged 25% in the last fiscal year and J.C. Penney’s share prices fell 32% since January this year. In April, Ackman acknowledged the shortcomings of the chief executive officer he had chosen to turn around the retailer, Ron Johnson. Ackman lost hundreds of millions of dollars in this bet when he bought the shares at $20.01. J.C. Penney’s shares closed at $13 after he announced his sales. J.C. Penney last week said it was instituting a new plan to block takeover bids f......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Macro hedge funds up 3.3% in one week on Fed and Brexit pays off[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were boosted by the strong performance of global macro funds, with the Lyxor Global Macro Index gaining 3.3% as of the week ending Oct. 11 (-1.7% YTD), Lyxor Asset Management reported. Their short on the p