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RAPAPORT... Activist investor William Ackman, the founder of Pershing Square Capital Management, sold his entire stake in J.C.Penney Company, representing 39.1 million shares or about 18 percent of the retailer's shares, to Citigroup Inc., according to a filing notice. Pershing Square stated that Citigroup offered $12.90 per share and the sale is expected to close on August 30. Two weeks ago, Ackman went head to head with JCPenney's board, mostly through contentious press announcements, on how best to move forward in finding a permanent CEO. The board stood its ground and the exchange eventually led to Ackman stepping down.
Ackman reached a deal with the board that enabled him to sell his shares in JCPenney, and this week the board moved to adopt a shareholders rights plan, preventing ''any potential future use of coercive or abusive takeover techniques and to help it ensure that stockholders are not deprived of the fair value of their investment.''
Shares in JCPenney were trading for almost 2 percent lower than yesterday's closing price at $13.35 in pre-market hours on August 27. JCPenney's shares are down 47 percent from one year ago.
The retailer reported that revenue and same-store sales plunged 11.9 percent year on year to $2.7 billion for the second quarter that ended on August 3. JCPenney recorded a loss of $586 million, or $2.66 per share, compared with a loss of $147 million, or 67 cents per share, one year ago.
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