Ackman Takes Roughly $1 Billion Stake in Lowe's -Update
May 23 2018 - 12:54PM
Dow Jones News
By Cara Lombardo
William Ackman's Pershing Square Capital Management LP has
joined another activist investor in Lowe's Cos., taking a roughly
$1 billion stake in the home-improvement retailer, according to
people familiar with the matter.
Mr. Ackman revealed the position at a conference in New York on
Tuesday, said the people, who were in attendance. Lowe's has a
market value of roughly $77.7 billion.
The people said Mr. Ackman supports Lowe's incoming Chief
Executive Marvin Ellison, who during 12 years at Home Depot Inc.
was credited with improving customer service and e-commerce and
expanding its professional business. On Tuesday it was announced
that Mr. Ellison would leave his position as CEO at struggling
retailer J.C. Penney Co. to take the top job at Lowe's, where he is
expected to implement many of the same improvements he made with
Home Depot.
Lowe's CEO Robert Niblock said he would retire in March, a week
after three new directors joined the board as part of an agreement
with activist investor D.E. Shaw & Co., which owns about a 1%
stake.
Mr. Ackman agrees with D.E. Shaw's view that Lowe's is lagging
Home Depot and could do more to capitalize on an improving
real-estate market, the people said. The stake would put two
activists in the top 16 holders in the company, according to the
people.
Mr. Ackman has pledged to remain out of the headlines after a
rough stretch of performance has shrunk his fund, and he has
recently taken several new positions where he has said he supported
management and avoided detailed complaints, including a quick trade
in Nike Inc. and an investment in United Technologies Corp.
Pershing Square's publicly traded fund turned slightly positive
for the year this month, according to disclosures, as some of his
investments have started gaining again.
Lowe's shares rose 9.8% recently after the company reported
growth in sales and earnings.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
May 23, 2018 12:39 ET (16:39 GMT)
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