Activist Presses Target For New Board

ANNE D'INNOCENZIO

NEW YORK (AP) — Calling Target Corp.'s current board insular, activist shareholder William Ackman paraded his slate of nominees — including a former CEO of Starbucks and a real estate executive — at a town hall meeting Monday for investors.

These candidates will provide a fresh perspective and expertise and help the discount retailer become more profitable, Ackman said.

"The board lacks experience in (Target's) core business," said Ackman — who runs hedge fund Pershing Square Capital Management, which owns a 7.8 percent stake in Minneapolis-based Target. He was speaking to investors and news media.

Ackman said he has a high regard for management but thinks "the board needs change. ... This group offers fresh perspective."

Investors may be open for change as Target's shares fell 55 percent between September 2008 and March, though the stock, now about $43, started to rally as Ackman began his campaign to change the board.

Ackman has long pushed Target to do more with its assets as part of his effort to boost the company's stock, which has fallen 39 percent from its high of about $70 in July 2007 as it has lagged behind rival Wal-Mart.