Friday, September 01, 2006

Ackman's Pershing Square Looking to Buy More McDonald's (MCD) Stock

In an SEC filing today, McDonald's (NYSE: MCD) said in light of its contemplated repurchase of stock through the exchange offer, it was notified that three investment funds managed by Pershing Square Capital Management L.P. or its affiliates planned to file on or about August 15, 2006 necessary notifications under the Hart-Scott-Rodino Antitrust Improvements Act to acquire in excess of $793.8 million of McDonald's common stock.

McDonald's noted that the prescribed "waiting periods" under the Act must expire or be terminated before these funds may increase their ownership level as specified in the notices received by McDonald's.

Last year, Pershing Square, run by activist investor Bill Ackman, pushed the company to spin off 65 percent of its company-owned restaurants in a stock offering. Ackman later backed off after the company said it would take a number of steps to improve value including a $1 billion buyback and licensing 1,500 restaurants. Ackman was also instrumental in getting Wendy's International (NYSE: WEN) to make aggressive changes, including spinning off its Tim Horton's (NYSE: THI) chain.

Shares of McDonald's are 1.45% higher to $36.42 in mid-day action Friday.

NOTE: While no 13D was filed, Ackman falls under the 'activist investor' title.

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