Monday, December 24, 2007

Pershing boosts stake in Target to nearly 10 percent

WASHINGTON (Reuters) - Activist hedge fund Pershing Square Capital raised its stake in Target Corp (TGT.N: Quote, Profile, Research) to nearly 10 percent, a U.S. Securities and Exchange Commission filing said on Monday. Pershing, which recently raised a $2 billion fund to exclusively invest in Target, now holds a 9.97 percent stake in the discount retail chain, up from approximately 9.6 percent in July. Pershing said it has also invested in Target swaps and options, which combined with the stock gives the fund an economic exposure equal to a 12.6 percent stake in the retailer. According to the filing, Pershing said it has met with Target's management and may meet them again to discuss the company's strategy, business, assets, operations, capital structure or its financial condition. Pershing said it has engaged financial advisers and may contact other Target shareholders. Target rose 2.2 percent to $51.81 on the New York Stock Exchange.

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