Wednesday, October 29, 2008

Update on the Pershing Square story

Yes, as he promised, Pershing Square's principal Bill Ackman did explain his plan to improve the value of the equity of Target Corp. today.

He said that the company should spin off a separate entity that will own the land on which its stores are built, then lease the land from its corporate offspring for a period of 75 years.

Target responded non-committally. It is reviewing the plan, but it has "serious concerns on a number of important issues."

It sounds like sleight-of-hand to me, but I'll give myself three days to mull it over. Catch you folks here Sunday.

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