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William Ackman Makes Roughly $1 Billion Stake In Lowe's: Reports

William Ackman's hedge fund Pershing Square Capital Management LP has reportedly taken about $1 billion stake in Lowe's Co.(LOW), as the activist investor expects the retailer to improve under new CEO Marvin Ellison.

According to WSJ, Pershing Square has built a stake in the home-improvement chain valued at roughly $1 billion as of Tuesday's close in what is expected to be a friendly investment, according to people familiar with the matter.

The report says that Ackman supports Lowe's incoming Chief Executive Marvin Ellison. Lowe's appointed Marvin Ellison as president and Chief Executive Officer, effective July 2, 2018. Ellison succeeds Robert Niblock, who previously announced his intention to retire.

Ackman also said he agrees with activist investor D.E. Shaw's position that Lowe's needs to put in more effort to catch up with its competitor Home Depot. Shaw had named new directors to its board in January. Meanwhile, Ackman is not currently seeking a board seat at Lowe's.

"We are aware of reports that Pershing Square has invested in Lowe's. The Lowe's Board of Directors and management team remain committed to creating value for all shareholders, and will continue to take actions to achieve this objective," Lowe's said in a statement to CNBC.

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