In the interest of full disclosure: I own no shares of Target.
I have been watching the schoolyard brawl between Target and William Ackman (Pershing). It seems that Ackman is upset because he does not agree with the way Target is running their business, so he has resorted to bullying Target into submission to his wants.
I have been watching recently as CNBC has been giving Ackman a lot of air time recently to state his case. They also offered air-time to Target, but Target refused.
Ackman admits that his stake (3%) is low to expect a seat on the board – ok, then why pursue it , if you admit that it is low? Interesting that Ackman has so many issues with Target, but there are others that own more of Target — how about State Street that owns 8.63%, how about Barclays at 3.74% and Vanguard at 3.32%. We do not hear anything from those firms at all regarding how Target is run.
This is a prime example of what is wrong with the system. People do not have a voice unless they own a large number of shares. Only then, we seem to see the bullies come out (Ackman, Icahn, etc)
Even though I do not have any financial interest in what happens, I hope the shareholders send a message loud and clear to Ackman — go bully someone else.
There is a reason why people like this are termed “activist investors” Remember what happened to Carl Icahn with the Yahoo/Microsoft debacle…
UPDATE 5/28: The shareholders have spoken and Ackman’s proposals have been defeated!