Investor lobbies for control of Target

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Investor lobbies for control of Target

March 23, 2009

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Minneapolis--Venture capitalist William "Bill" Ackman has announced that he will wage a proxy battle for control of retail giant Target Corp., according to a press release.

In the release it states that Ackman, founder and CEO of investment and hedge fund firm Pershing Square, intends to nominate five representatives for election to Target's board of directors at the annual shareholders' meeting, scheduled for May 28.

If all five are elected, nominees of Pershing Square, which has beneficial ownership of approximately 7.8 percent of outstanding Target common stock, will hold five of the 12 seats on Target's board.

"We believe that our nominees will bring insight, accountability, and fresh and relevant perspectives to the Target board," Ackman said in a statement. "If elected, we believe they will substantially improve Target's ability to navigate through the current economic environment while increasing shareholder value over the long term."

In response to Ackman's announcement, Target issued a statement that the board would be nominating all four current members whose terms expire at this year's meeting for re-election.

"The board firmly believes that the re-election of these directors is in the best interest of Target shareholders," the statement reads.

Target also stated that it is "disappointed Pershing Square has decided to pursue a costly and disruptive proxy contest, especially in light of our previous dialogue. Target has a long history of being responsive to shareholders and has engaged in numerous discussions with Pershing Square over a 20-month period."

Ackman's announcement followed Target's rejection of previous candidates identified by Pershing Square as potential board members.

In addition to Ackman, Pershing Square's nominees are: Michael L. Asner, chairman and chief executive officer of Winthrop Realty Trust; Jim Donald, former CEO of Starbucks Corp.; Professor Ronald J. Gilson, a professor at Stanford and Columbia law schools and Richard W. Vague, former CEO of First USA, Juniper Financial and Barclays Bank Delaware.

Minneapolis-based Target has more than 1,600 stores in 47 states and ranked No. 13 in National Jeweler's 2008 State of the Majors list of $100 Million Supersellers.

According to the list, Target racked up $460 million in jewelry and watch sales in 2007, carrying brands including Charles and Colvard moissanite, Freshwater Pearls by Margaux, Journey, and Armitron, Casio and Timex watches.

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