Target Urges Shareholders To Reject Board Picks

SARAH SKIDMORE

PORTLAND, Ore. (AP) — Target Corp. on Thursday once again urged its shareholders to vote against hedge fund leader William Ackman's slate of nominees for its board, saying his attempts to change the company's leadership and direction are misguided and motivated by a risky short-term agenda.

Target says its shareholders would be best served by re-electing the four current directors whose terms expire at this year's annual meeting. Ackman, who runs the hedge fund Pershing Square Capital Management, which owns nearly 8 percent of the company's outstanding stock, says Target's board needs fresh perspective to make the retailer more profitable.

The fight has intensified as the meeting, set May 28, approaches.

Ackman has long pushed Minneapolis-based Target to do more with its real estate and other assets as part of his effort to boost the company's stock, which has fallen 25 percent in the past year and lagged behind rival Wal-Mart.

Target says Pershing Square has presented no plan or strategy to justify a change in the board. In supplemental proxy materials filed Thursday, Target argues its board has consistently delivered strong returns for shareholders and it says Ackman is making these moves as part of a dispute over real estate strategy.