Advisory Firms Split On Target, Ackman Proposals

EMILY FREDRIX

MILWAUKEE (AP) — Two shareholder advisory groups were split Friday on proposals Target Corp. shareholders are about to vote on, with one saying hedge fund leader William Ackman's moves favor risk-taking over long-term performance.

The fight between Ackman, who runs hedge fund Pershing Square Capital Management, and the Minneapolis-based retailer has been intensifying as the company's shareholder meeting nears. It is to take place May 28 outside Milwaukee.

Proxy Governance Inc. issued a report late Thursday saying shareholders should elect two of Ackman's five nominees for Target's board for their experience in retail and real estate.

Ackman contends Target's board needs new perspective in those arenas to make the company more profitable. He has been trying to shake up the board since Target rejected Pershing Square's proposal last year to separate its stores and distribution centers from the land it owns underneath them.

Proxy Governance also said shareholders should reject a measure by Target that would keep the board's size at 12 members. Ackman wants the board to increase to 13 members, which would mean that — even if four of his nominees are voted down — one of his slate would have to be elected because the company has only nominated enough members to fill 12 seats.