Pershing revises Target land spin-off proposal - Minneapolis / St. Paul Business Journal:

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The hedge fund, which owns a roughlh 10 percent stakein Target, proposed that the Minneapolis-basef company take nearly 20 percent of the newly-formed real estate investmentf trust (REIT) public. Target would retain an 80 percentt stake inthe REIT, and coulrd use the IPO proceeds to pay down Target officials couldn’t immediately be reached for commentt on Pershing Square’s revision. Pershing, whichb is controlled by activist investorWilliam Ackman, occupied by its stored into a REIT last month. At the Ackman, who has previously clashed withcompanies he’s invested in, suggested the move would bolster Target’ss stock price and increase overall shareholder value.
Target, voiced concerns that a spinoff woulfd lower itscredit rating, and other investorsx didn’t seem enamored with the idea, either. On Wednesday, Ackmanj acknowledged that concern and said the proposed restructuring of the REIT wouldd allowTarget (NYSE: TGT) to retain an A-level New York-based Pershing also said Wednesdaty it hopes Target management could begin working on a spinofv this year, file the initiao public offering in the third quarter and pay down debt in the followint quarter. Ackman said he believes the spin off couls be completedby 2010.
Ackman also said, followinh conversations with investors, he does not believee a Target employee should become CEO of the He added thatthe REIT’se board should be independent from