Pershing Square, the hedge fund led by activist investor Bill Ackman, has sold shares in the US retailer with which it is waging a boardroom battle, Target Corp.
The fund said today (15 May) that it now owns 24.8m shares in Target, down from 26.8m.
The boardroom struggle at Target Corp. has rumbled on this week with the discount retailer again insisting its nominees to the board would be best for the business.
Target is in a long-running battle with Ackman, who wants to nominate himself and four others to the retailer’s board as he looks to revitalise the business.
The retailer, however, has defended its strategy and has its own slate of board nominees. Yesterday, Target (14 May) outlined why its selections would benefit the business.
“Our directors are leaders in their respective fields and we believe that losing their experience and judgment would be to Target’s detriment,” the retailer said.
Target added that it believed that its nominees are “better qualified to serve the interests of shareholders” than Ackman’s nominees.
Target’s AGM will be held on 28 May. One corporate advisory firm, Egan-Jones, has recommended that Target shareholders vote with the company. Another firm, Proxy Governance, has backed two of Ackman’s nominees.
“We continue to believe that our nominees – Mary Dillon, Richard Kovacevich, George Tamke and Solomon Trujillo – have the diversity, experience and qualifications to provide effective and independent oversight and direction to Target,” the retailer said, expressing “disappointment” at the advice of Proxy Governance.
