Wednesday, October 03, 2007

Ackman Takes Stake in Another Large US Retalier, This Time It's Sears (SHLD)

At a charity event in Dallas yesterday William Ackman, the owner of activist hedge fund Pershing Square Capital, told the audience that he owns a 5 million share stake in Sears Holdings Corporation (Nasdaq: SHLD). Ackman also indicated that he was thrilled with the efforts of Sears' Chairman Eddie Lampert and was looking forward to working with him.

A 5 million share stake in Sears would give Ackman's firm 3.5% of the outstanding stock.

Ackman's firm recently accumulated a large stake in another large US retailer, Target (NYSE: TGT). Following Ackman's involvement, Target said they would review alternatives for their credit card receivables.

Last year, Ackman won a battle against Lampert's Sears Holdings when the Ontario Securities Commission killed the company's $899 million takeover of Sears Canada. Ackman argued that Sears Canada was worth at least twice what Lampert offered.

Indications from Ackman's comments is that he will not take a combative activist bent with the Sears investment and will look at it as more of a partnership.

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