Bill Ackman backs-out from J.C. Penney Company, Inc (NYSE:JCP) board
The Pershing Square hedge fund manager Bill Ackman who has been the reason for the storm that brewed in the J.C. Penney Company, Inc (NYSE:JCP) just last week finally announced that he will be quitting the company’s board. The week-long volley of verbal blows between him and the other members of the JCP board had too many issues tagged to it.
A transformation that went awry
In his perspective, Ackman had been trying to bring about a transformation in the workings of the flagging company. On the other hand, the company felt that all his suggestions and actions acted against its interests and that they were counterproductive to say the least.
The JCP management had very openly stated that it would be necessary for Ackman to step-down form the board in order to allow it to focus on its strategic functioning in the manner that they chose to. The search for a new CEO is still on. Bill Ackman’s Pershing Square commenced acquiring JCP shares almost 3 years ago and had amassed a whopping 18% of the company stock. The average purchase-value of the 39M shares that are held by the hedge fund is priced at $22/share.
Latest trading stats
J.C. Penney Company, Inc (NYSE:JCP) dipped 3.39% on Thursday. The opening price of the shares was $12.67 which rose to an intraday high of $13.44 and closed at $13.11 per share. More than 25.40 million shares were traded in the last trading session while the average volume of shares traded over a 30 day period was 14.07 million. The company has a market cap of $2.88B.
JCP is essentially a holding company. As of 28 January 2012, it operates 1,202 department-stores across 49 states in America as well as in Puerto Rico. It is involved in selling services and merchandise to consumers via its department stores as well as via its official website jcp.com.