William Ackman has cut his ownership stake in Target Corp. to 4.4 percent from 7.8 percent.
The move, which the activist investor achieved through the sale of options and purchase of common stock, comes more than two months after his Pershing Square Capital Management lost a proxy fight for five seats on the retailer’s board.
In a filing with the Securities and Exchange Commission Tuesday, Ackman said Pershing Square’s previous 7.8 percent stake in the retailer had been made up of 3.3 percent of its common stock and 4.5 percent in stock-settled call options.
The investment fund’s now 4.4 percent beneficial ownership consists of 3.5 percent of Target’s common stock and 0.9 percent in options.
Ackman lost his proxy fight with the retailer on May 28, when investors voted for a Target-backed slate of board members at the company’s annual meeting. He had wanted the company to sell its credit card business and spin off its real estate holdings, amongst other proposals.
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After the meeting Ackman said he might sell some or all of his shares in the retailer.
For complete coverage, see Wednesday’s WWD.