The Wall Street Journal (WSJ) reports that the board of J.C. Penney Co. (JCP) is to hire a new director with substantial experience in retail. This is perceived as a move to assuage the tensions between the company and its largest shareholder William Ackman.
Sources also told WSJ that Ackman's call for the removal of Chief Executive Myron Ullman would not be entertained as of this time. As early as Tuesday, a new director for JCP may have already be named. In fact, more than one director may be named to appease Ackman's demands for a more functional and effective board.
The public battle between the two caused other JC Penney investors to hold on to their current stakes. George Soros-backed Soros Fund Management LLC is still holding a 7.9% stake in the retail company. Glenview Capital Management, who holds 4% in the retail company, is being passive about the JCP-Ackman battle, according to a source familiar with the hedge fund company.
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