User 183867

More on Ackman / Target

Todd, your argument is internally inconsistent. You imply it doesn't matter whether his beneficial interest consists of common or options and then when he lowers his beneficial interest but increases the common component of the interest, you say he took up his stake. This logic is very shaky.

Agree with the previous poster -- Bill Ackman's idea works fine in a spreadsheet, but sucks in the real world. Taking a pristine property portfolio and levering it up to gain a tax shield might be a fine exercise for a summer associate willing to show you his Excel skills, but in the real world it imposes a strain on the company's credit, which can completely wipe out the benefits of the tax shield in a higher cost of equity and total capital. It is a bad idea.