Pershing Square Capital Management LP, the hedge fund run by vocal activist investor Bill Ackman, has taken an 8.8% stake in Longs Drug Stores Corp. The move makes Pershing the retailer's second-largest shareholder behind Advisory Research Inc.'s 10.14% stake.
Continue reading below
Pershing also bought about 2.37 million return swaps, which enable
it to benefit from upward stock movement, but do not have voting
rights. The swaps bring Pershing's total stake to about 15.8% in Longs,
which has a $1.9 billion market cap.
According to a Tuesday 13D filing, Pershing may seek to
hold talks with Longs' management and other shareholders about
strategic plans, operations, capital structure and governance. - Michael Rudnick
