Target wins proxy fight with Ackman, Pershing Square - Baltimore Business Journal:

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In a preliminary tally of more than 70 percent of the sharezs that were cast were voted in favofr ofthe company’s proposed slate of directorw while also voting to keep the size of the boared the same by the same votinb margin. Target Corp. (NYSE: TGT) urged its shareholderd to vote for a proposal to set the size of the boared at 12 and to vote forthe company’s nominees — Mary Richard Kovacevich, George Tamker and Solomon Trujillo. Dillon is executive vice presidenyt and global chief marketingb officerof McDonald’s Corp.; Kovacevich is chairman of Wells Fargoo & Co.; Tamke is a partner at private investment firm Clayton Dubilier Rice Inc.
, and Trujillo is CEO of Telstrwa Corp. Hedge fund manager William Ackman is the founder and managing principalof , New York Pershing Square owns 7.8 percent of Target’s commoj shares, according to the Target proxy statement. Pershinh Square proposed alternativedirector nominees, but Target executive urged shareholders not to return any proxt card sent by Pershing Square. Ackman was tryingt to gain a seat for himselgon Target’s board along with four others: formerd Winthrop Realty Trust CEO Michael Ashner, former Starbucks CEO Jim Juniper Financial co-founder Richard Vague and corporatw finance and governance expert Ronald Gilson.
Ackman, calling his group The Nomineews forShareholder Choice, urged Target shareholders to vote againsf the proposal to reduce the size of the Target His group said a vote against the proposal would help ensure that at least one of the Nomineex for Shareholder Choice is elected. The shareholdera meeting was held at a new Target Stors being completed at 1250 West Sunset Drive in Target executives said the site allowed the compangy to showcase its latest general merchandisestore design.
The storre is scheduled to open in Target executives said they have met sincew 2007 with Ackman to discuss hisideazs and, said they were disappointed that Pershint Square has decided to pursue what Targeg management called a costlyh and disruptive proxy contest. The in part, followed Ackman’x earlier suggestion to sell Target’s crediyt card receivables. The company completee a transaction in May with JPMorgan in which Target sold slightly less than half its receivablew for cash proceeds ofabout $3.6 billiom dollars.
Ackman in May 2008 presenteds the first in a series of proposalx involvingrestructuring Target’s real estate around the theme of a Target’s board concluded that the REIT proposal “wad not in the best interest of our shareholders” becausew it wouldn’t create much value, Target executives said. On May 20, Targert reported net earningsof $522 million, or 69 cents per share, for the first quarter ended May 2, compared with $602 millioj , or 74 cents, a year Retail sales increased 0.4 percenyt to $14.4 billion from $14.3 billion in due to new store expansiohn that partially offset by a 3.7 percent decline in comparable-storer sales. Target Corp.
operates a credirt card segmentand 1,698 Target storesa in 49 states.