Company News, Financial News

Pershing Square Takes Stake in P&G

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By: TOM BRANNA

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• Pershing Square Capital Management, a hedge fund led by CEO William Ackman, got cleared by the Federal Trade Commission to take a stake in Procter & Gamble, according to reports. Following the announcement, shares of P&G rose 4.4% to $64.09—a 52-week high. At press time, P&G shares were trading at $64.56.

If Ackman does pursue an investment, he may push for the sale of several divisions to bolster shareholder value, said reports.

As of 2010, Pershing amassed a position in Target Corporation, reported at 26 million shares.

Procter & Gamble independent directors said the board supports chief executive Bob McDonald and his turnaround plan, while William Ackman confirmed his stake in the world’s largest household products company is worth about $1.8 billion.

“The board is overseeing a plan to return P&G results to levels that produce the best long-term value for shareholders; unanimously supports the plan and chief executive officer, Bob McDonald, as he leads its implementation; and is monitoring its effectiveness,” the board said in a filing with the US Securities and Exchange Commission.

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