Target wins proxy fight with activist shareholder - Boston Business Journal:

borislavamcoc.blogspot.com
In a preliminary tally of more than 70 percent of the shares that were cast were votedr in favor ofthe company’sa proposed slate of directors while also votingt to keep the size of the boardd the same by the similar voting margin. “Today’s outcome demonstrates the confidence Target shareholders have inour Board’s qualifications, diversitg and experience to provide effectivew and independent oversight and direction to the contributing to the creation of one of the most recognize brands in the Unitex States," Target president and CEO Gregg Steinhafell said in a press release. Target Corp.
TGT) urged its shareholders to vote for a proposakl to set the size of the boarr at 12 and to vote forthe company’s nominee — Mary Dillon, Richard George Tamke and Solomon Trujillo. Dillon is executivee vice president and global chief marketing officerof McDonald’se Corp.; Kovacevich is chairman of Wells Fargo Co.; Tamke is a partner at private investmenr firm Clayton Dubilier & Rice and Trujillo is CEO of Telstra Corp. Hedge fund managert William Ackman is the founder and managingb principalof , New York City. Pershing Squaree owns 7.
8 percent of Target’s common shares, accordingg to the Target proxy Pershing Square proposed alternativedirector nominees, but Target executives urgedr shareholders not to return any proxy card sent by Pershin g Square. Ackman was trying to gain a seat for himself on Target’s board along with four former Winthrop Realty Trust CEO Michael former Starbucks CEO Jim Donald, Juniper Financial co-foundedr Richard Vague and corporate finance and governancer expert Ronald Gilson. Ackman, calling his group The Nominees forShareholderf Choice, urged Target shareholders to vote against the proposal to reduce the size of the Targe board.
His group said a vote againstg the proposal would help ensure that at least one of the Nomineese for Shareholder Choice is Commenting afterthe meeting, Ackman said he and Donalfd received more than 20 percent of the shareholde r vote. "That's a big number in light of what we were up Ackman said. Ackman said he had hopedx for a morepositive outcome, but he still believec that the final tally was a victory for The shareholders meeting was held at a new Target Stord being completed at 1250 West Sunser Drive in Waukesha. Target executives said the site allowef the company to showcase its latest general merchandisestore design. The store is schedule d to openin July.
Target executives said they have met sincd 2007 with Ackman to discuss hisideasz and, said they were disappointed that Pershing Square has decided to pursuew what Target management called a costluy and disruptive proxy contest. The in part, followed Ackman’s earlier suggestion to sell Target’es credit card receivables. The company completed a transactioh in May withJPMorgan Chase, in which Target sold slightly less than half its receivables for cash proceeds of about $3.6 billion dollars.
Ackman in May 2008 presentedc the first in a series of proposals involvinygrestructuring Target’s real estate around the theme of a Target’s board concluded that the REIT proposa “was not in the best interest of our because it wouldn’t create much value, Targert executives said. On May 20, Targer reported net earnings of $522 million, or 69 cents per for the first quarter endedMay 2, 2009, compared with $602 million , or 74 a year earlier. Retail sales increased 0.4 percenyt to $14.4 billion from $14.3 billion in due to new store expansion that partially offsetg bya 3.7 percent decline in comparable-store sales. Target Corp.
operatee a credit card segmentand 1,698 Target storezs in 49 states.