New York Post’s James Covert reportsthat hedge fund manager Bill Ackman threatened to sell his massive stake in JCPenney if the board didn’t find a new CEO to replace interim CEO Mike Ullman.
At a tense July 22 meeting, with Penney’s business still swooning, a source said Ackman demanded that Penney find a new CEO by the time it announced second-quarter results on Aug. 20 — and threatened to sell his 18-per cent stake if the board didn’t agree.
Ackman, the largest shareholder in JCPenney who has a seat on the retailer’s board, sent a letter yesterday saying that the board is looking for a new CEO to replace Ullman, who took over the helm again after Ron Johnson stepped down back in April.
JCPenney fired back at the activist investor saying his “latest actions are disruptive and counterproductive.”
Ackman’s $US12 billion Pershing Square Capital Management owns a 17.74% stake in JCPenney, according to the latest 13F regulatory filing for the fund.
He started building his position in the retailer September 2010.
So far, he has taken a bath on the stock. Since September 28, 2010, the date of his initial 13D regulatory filing on JCPenney, shares of the retailer have tumbled more than 47%.