Advertisement
 
YOU ARE HERE: LAT HomeCollections

Target directors may face proxy battle

A hedge fund manager plans to nominate himself and four others to the board.

March 17, 2009|Bloomberg News

Hedge fund manager William Ackman plans to nominate himself and four others to the board of Target Corp., whose performance has trailed that of Wal-Mart Stores Inc.

Ackman, who heads Pershing Square Capital Management, said Monday that he would propose Richard Vague, a former bank executive; Jim Donald, who served as chief executive at Starbucks Corp.; Michael Ashner, chairman and CEO of Winthrop Realty Trust; and Ronald Gilson, a law professor at Stanford University and Columbia University.

The slate would bring expertise in credit cards, real estate and food sales, areas where the retailer needs to improve, Ackman said.

He has pressed Target's management to sell its credit card portfolio, buy back shares and place the land under its stores into a real estate investment trust that would lease the property back to the retailer.

Directors on the nominating committee met with Ackman recently and considered him and another candidate he suggested who was affiliated with a different retailer, Target said in a statement. The committee declined to nominate both people, Target said.

"We are disappointed that Pershing Square has decided to pursue a costly and disruptive proxy contest, especially in light of our previous dialogue," Target said in the statement. Target shares fell $1.14, or 3.8%, to $28.83.

Advertisement
Los Angeles Times Articles
|
|
|