Activist: Why Ackman Failed vs. Target

"Activist Investor" Eric Jackson publishes commentary every Wednesday. Please bookmark TheStreet.com and check back each week for more analysis of shareholder rights issues or click here for an RSS feed.

When Bill Ackman of Pershing Square Capital Management attended Target's (TGT Quote) annual meeting in suburban Milwaukee last Thursday it was the final culmination of a months-long proxy fight with the company's incumbent board. Although some observers, including me, predicted Ackman's slate would win one or two seats out of the five he was seeking, he came away empty-handed. Target announced at the meeting that all incumbent directors were re-elected with at least 70% of the vote.

The mainstream press immediately declared it a rout against Ackman. "Target Triumphs Over Ackman" said BusinessWeek, "Ackman Misses Target" said the New York Post. The New York Times headline read, "Target Shareholders Strongly Reject Dissident Slate."

But the truth is that the vote was far closer than how Target spun it. ...