By Amy Or
NEW YORK--Bill Ackman's Pershing Square Capital Management has
21.8 million shares of Procter & Gamble Co. (PG) and call
options on an additional 8.3 million shares, and has sold its
entire investment in Kraft Foods Inc. (KFT), according to a
regulatory filing.
Mr. Ackman held more than 15 million shares of Kraft at the end
of the first quarter.
The changes in fund holdings were disclosed Tuesday in a 13F
filing, where investment managers with more than $100 million in
assets report their equity stakes on a quarterly basis.
At P&G's current share price of $66.73, Mr. Ackman's
shareholding was worth about $1.5 billion.
The activist hedge-fund manager, which reported $7.6 billion in
equity holdings as of June 30, last month revealed a stake in the
consumer-goods giant that he called his largest-ever initial
investment in a company. He said then the stake was worth about $2
billion.
Mr. Ackman hasn't revealed specific intentions for P&G but
said he is interested in meeting P&G Chairman Bob McDonald.
Activist hedge-fund managers often accumulate a sizeable stake in a
company by purchasing stocks and related options before pushing for
corporate changes.
To fund the P&G investment, the hedge fund significantly
reduced its Citigroup Inc. (C) holding. At the end of June,
Pershing Square held 1.11 million shares in the bank, down from
26.1 million at the end of the previous quarter.
Pershing Square kept its holdings in J.C. Penney Inc. (JCP),
Canadian Pacific Railway Ltd. (CP.T), Beam Inc. (BEAM), General
Growth Properties Inc. (GGP) and Howard Hughes Corp. (HHC)
unchanged from the prior quarter.
The document also didn't mention Pershing Square's 12% interest
in Burger King Worldwide Inc. (BKW). Pershing Square got the stake
from its interest in U.K.-listed Justice Holdings Ltd. Justice
bought the hamburger restaurant chain for $1.4 billion in
April.
As previously disclosed by the hedge-fund manager in prior
filings, the hedge fund sold its entire investments in Family
Dollar Stores Inc. (FDO) and Fortune Brands Home & Security
Inc. (FBHS).
Tuesday's filing, which presented a snapshot of the manager's
portfolio at the end of the second quarter, didn't reflect the
splitting up of Alexander & Baldwin Inc. (ALEX). In two filings
last month, Pershing Square said it has an 8.6% stake in Matson
Inc. (MATX) and completely sold its investments in Alexander &
Baldwin.
Write to Amy Or at amy.or@dowjones.com
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