Ackman on the Prowl
Bill Ackman’s new $2 Billion single purpose fund is unique.
He has one, and only one target in his sights.
The general partner of Pershing Square Capital Management has rattled cages at Wendy’s, Ceridian and McDonalds. But who is he going after this time?
Apparently he will used the money to purchase a position in a company with $30 to $40 Billion market capitalization. This mystery company has three distinct divisions, which each having warts that are specific to the division.
Place your chips…
The phrase “unlocking value” is often used in evaluating portfolios of real estate holdings, and was taken to mean that the company Ackman has in mind has a division with extensive real estate holdings. “Unlocking value” was also a key aspect of Ackman’s occasionally heated engagement with McDonald’s.
Other names a potential investor mentioned as possibly meeting those criteria were Starwood, Marriott, Anheuser-Busch, maker of Budweiser beer, and Kraft.
Of the four, Anheuser-Busch has the most-iconic brand, including a large real estate exposure from its theme park unit. It also has had some interesting stock and option volume activity. For example, its $55 call options - conferring the right to purchase the stock at $55 in June and July - traded 5,869 contracts yesterday, many times its normal volume.
Pershing Heads to War with $2 B Fund
New York Post
Comments:
Next entry: Put Up or Shut Up
Previous entry: Nascar Legend's Final Lap
