Plus   Neg

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Whole Foods Market stores have recalled Decorated Red Apple Cookies as they may contain undeclared egg. People who have an allergy or severe sensitivity to these allergens run the risk of serious or life-threatening allergic reaction if they consume these products. The cookies were sold by the... Norwex has announced voluntary recall of about 58,000 rubber brooms due to laceration hazard. According to the company, handles of the recalled brooms can break in half, exposing a metal inner rim, posing a laceration hazard to the user. The recall involves extendable indoor/outdoor white rubber... Amazon.com Inc. has expanded its AmazonFresh grocery delivery service to three new cities. Beginning today, Amazon Prime members in Houston, Minneapolis and Phoenix can shop thousands of products, ranging from meat and seafood to fresh produce and everyday essentials. The groceries will be delivered to their homes in two hours or less, with options for one-hour and two-hour delivery.
Follow RTT