Is Bill Ackman about to buy more JC Penney?
JC Penney capped its largest shareholders ownership stake at 16.5% last October, but they are easing this restriction, allowing Ackman’s hedge fund to buy up to 26.1% of the department store, according to a Reuters report.
JC Penney adopted a policy in October that forbade any shareholder from gobbling up more than 10% ownership, or for owners with more 10% or more to buy additional shares. For Bill Ackman, they made an exception, and now, the fund manager has a spot on Penney’s board.
Bill Ackman’s Pershing Square is already JC Penney’s Largest shareholder. In June, when the department store named Apple’s Senior Vice President of Retail, Ron Johnson, as CEO, the value of Pershing’s JCP holdings increased by nearly half a billion.
JC Penney’s stock went up 3.8% this afternoon.