Obligatory activism post of the day: Pershing Square Capital Management has raised $2 billion to launch an assault on one “iconic American company.” The target is not known (to us), but the Post reports that Pershing told investors Friday that the capital would go toward a controlling stock position in a $30-40 billion market capitalization company with three divisions, all of which have “separate burdens depressing their value.” One needs its value unlocked, one needs to be sold, and one is simply “misunderstood.” Possible targets are BUD, KFT, MAR or HOT, with BUD up 2.5% on the news. Any guesses? In the last year, Pershing, under the guidance of William Ackman, has taken on Wendy’s International, Ceridian and McDonald’s.
Pershing Heads To War With $2B Fund [NYP]
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definitely BUD
Come on KFT!
Go MAR!
Seriously though, it probably is BUD.
Maybe Allstate? Sell off the life division, rework Encompass, and unlock value in the main Allstate brand by levering it up enough. Allstate is a free cash flow monster.
I wrote on this a while ago. Also at RealMoney.com…
Long ALL
he’s a hottie
It’s a trick.
It’s not $2 billion. It’s $20 billion.
And the paltry $30-40 billion company is a red herring. Think bigger. Think JNJ.
Would be interesting if they could actually force any changes @ BUD with a fairly entrenched board and longtime management. My bet is on KFT… it’s ready for some major change.