Bloomberg TV’s Stephanie Ruhle reports that hedge fund manager Bill Ackman has fired off yet another letter to JCPenney board calling for the resignation of Tom
Engibous, the chairman of the board.
According to Bloomberg, Ackman has said he has “lost confidence” in Engibous and wants him to be replaced with Allen Questrom, the former CEO of JCPenney.
Yesterday, the activist investor sent a letter yesterday saying that the board is looking for a new CEO to replace Mike Ullman, who took over the helm again after Ron Johnson stepped down back in April.
JCPenney fired back slamming Ackman saying his “latest actions are disruptive and counterproductive.”
Ackman is the largest shareholder in JCPenney and he has a seat on the retailer’s board. His $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. Since September 28, 2010, the date of his initial 13D regulatory filing on JCPenney, shares of the retailer have tumbled more than 47%.
The stock was last trading down 4%.
Here’s the Bloomberg TV clip:
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