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Details on how Ackman can exit J.C. Penney stake

  • Pershing Square - an owner of about 39M shares or 17.7% of J.C. Penney (JCP) - will be allowed up to 4 large sales (at least 5M shares) of company stock, but only after receiving permission from the retailer to do so. J.C. Penney is not obliged to allow more than 2 sales during any 12 month period. Once Pershing's stake drops below 5% it will no longer be bound by these terms.
  • The agreement signals Ackman's willingness to exit his stake in the company, says Ciit's Deborah Weinswig. Though it appears as if the sales will be orderly and over time, when combined with Vornado's (VNO) apparent intention to sell what left of its stake (6.1%), it could serve as an overhang on the stock.
  • J.C. Penney reports earnings on Tuesday.
  • Previous: Vornado's Steven Roth changes his mind on J.C. Penney.
Comments (5)
  • WPSPIKER
    , contributor
    Comments (1141) | Send Message
     
    This "Announcement" makes it sound like he is exiting his stake, when there has been no official announcements... Some additional short seller trying to create panic so it seems... P.S. has share price average in mid 25 range and they are not willing to lose $ on the deal. They are more likely to buy more at depressed levels so they can tender offer closer to 20/share.
    18 Aug 2013, 11:07 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1141) | Send Message
     
    read thru the 8K, and there are no PLANS to officially dump shares it does give them the ability but not until November20 or so (beginning on the day that is ninety (90) days following August 22, 2013,) and by that time there will be a lot more news and X-Mas around the corner which has in past been pretty good to JCP. Dont think they will be selling ANYTHING that time of the year unless they have someone paying them a premium for the shares.
    18 Aug 2013, 11:48 PM Reply Like
  • nostatic1
    , contributor
    Comments (179) | Send Message
     
    A fool and his money will part. JCP was a bungled investment by Ackman. He exacerbated the company's existing problems when he forced the hiring of Ron "Apple Genius" Johnson. After this epic embarrassment and the incredibly foolish way he's pushed his weight around, only to be (finally) told to leave the party, his ego won't let him stay in the stock. He'll sell for sure, even if it means taking $600 million+ in losses. As we'll see from Tuesday's earnings report, JCP is finished as a major retailer. Expect to see the stock below $10 when Ackman can sell in November.
    19 Aug 2013, 08:41 AM Reply Like
  • WPSPIKER
    , contributor
    Comments (1141) | Send Message
     
    FYI it will if it happens be set up as a public offering so would have to sell below public share price at time of offering so would most likely go to some other hedge-fund/ Warren Buffet type investors who buy the blood in streets. They will not go on-into open market.
    19 Aug 2013, 08:53 AM Reply Like
  • Spacely's Sprockets
    , contributor
    Comments (140) | Send Message
     
    Good wisdom WP & Nost...thanks for sharing :) It's kinda like a soon to be released epic film you are really wanting to see. The tale of the kindly & wise old board and the rebel child who was turned into a troll who is as destructive as the proverbial bovine in a china shop. Yeah I'd pay to see this play out!! Best of all it's free!!

     

    Thanks again,
    Cosmo Spacely
    19 Aug 2013, 10:37 AM Reply Like
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