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SURVEY: What Do You Think Of J.C. Penney After Ackman?

SURVEY: What Do You Think Of J.C. Penney After Ackman?

Bill Ackman has left the board of directors of J.C. Penney (NYSE: JCP) in rather theatrical style.

In a release issued early Tuesday morning, the board of directors announced the resignation of Ackman and the addition of Ronald Tysoe to the board.

More Questions

The move has created more questions despite answering many. The departure of Ackman from the board almost ensures that Mike Ullman will remain as CEO for the foreseeable future and that Thomas Engibous will remain the Chairman.

However, Ackman's 17.7 percent stake in the retailer is a massive question mark. What will become of his stake? If and when will he sell it and at what price?

There are a few scenarios that are plausible for his stake, including:

  • The company could buyback the stock from Ackman at a price they agree at, as did Yahoo! (NASDAQ: YHOO) with Dan Loeb when he left the board.

  • A secondary offering could occur to sell the stock to the public, floating the 17.7 percent stake to the mass public.

  • Sell the stock to another institution through a dark pool, keeping the shares from reaching the market.

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