Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Penney and Ackman sign pact on share sales
First Published Aug 16 2013 10:38 am • Last Updated Aug 16 2013 10:38 am

NEW YORK • J.C. Penney Co. and its largest shareholder, William Ackman, have made a deal that sets terms for allowing him to unload his stake in the company.

The agreement, filed with the Securities and Exchange Commission Friday, comes days after Ackman resigned from Penney’s board as part of a deal to resolve an unusually public battle between the activist investor and the struggling department store.

Join the Discussion
Post a Comment

Ackman’s Pershing Square Capital Management has 17.7 percent stake in Penney.

Under the deal, Ackman can make up to four requests to the company to register the sale of his shares. The agreement terminates when he owns less than 5 percent of the company’s stock.

Pershing Square is not legally able to sell its stock until at least Tuesday, when Penney is slated to report its second-quarter results, since Ackman is privy to confidential financial information as a board member.

The agreement, filed with the SEC, caps a tumultuous two weeks for Penney and Ackman.

Ackman went public last week with statements saying he’d lost confidence in Penney’s board and that Chairman Thomas Engibous should be replaced. Ackman and the retailer’s board also were bickering over how quickly the company should replace CEO Mike Ullman.

On Tuesday, Ackman resigned from the board, and Penney named Ronald Tysoe as a director to fill Ackman’s seat. Tysoe is former vice chairman of Federated Department Stores Inc., which is now Macy’s Inc. Penney will name an additional new director in the near future.

Ackman said in a statement Tuesday that the moves were "the most constructive way forward" for the Plano, Texas, company and all parties involved.

Penney’s board also reiterated its support for CEO Ullman, who returned to that job in April. Ullman had previously served as Penney CEO from 2004 to 2011.


story continues below
story continues below

Ackman’s departure doesn’t do much to reverse Penney’s declining business, which is trying to lure back shoppers turned off by a reinvention plan formulated by a former CEO backed by Ackman.

Ullman had replaced Ron Johnson, who was ousted as CEO after 17 months because his radical makeover led to massive losses and sales declines.

Ackman joined Penney’s board in February 2011 and was the one who pushed the board to hire Johnson, a mastermind of Apple Inc.’s successful stores. The hope was Johnson could inject new energy into a tired company.

Penney’s stock fell 45 cents, or 3 percent, to $13.38 in morning trading.



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Login to the Electronic Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.