Ackman Shot Down at Target Meeting (Updated)

Updated from 9:56 a.m. EDT

In the battle between Target(TGT Quote) and Bill Ackman, the discounter came out on top.

Shareholders snubbed the hedge-fund manager at the company's annual meeting on Thursday, opting to put all four of Target's incumbent nominees back onto the board rather than electing Ackman and his five dissidents. A proposal to set the board size at 12 also passed, according to a preliminary vote count.

Shares of Target fell 1.4% to $39.04 after the announcement.

"On behalf of Target's Board of Directors and management team, we thank our shareholders for their overwhelming support throughout this process," Gregg Steinhafel, chairman, president and CEO said in a statement. "Today's outcome demonstrates the confidence Target shareholders have in our board's qualifications, diversity and experience to provide effective and independent oversight and direction to the company, contributing to the creation of one of the most recognized brands in the United States."

Now the question remains: will Ackman, who owns a 7.8% stake in the company through his Pershing Square Capital Management hedge fund, continue to invest in Target?

Earlier this week, he essentially attempted to bribe shareholders into giving him a spot on the board by saying he would retain his stake, now worth over $55 million, for at least five years if he was elected.

Ackman attempted to push two of Target's board members -- Solomon Trujillo and Anne Mulcahy -- to resign, as a result of the fact that their employment status had changed.