Bill Ackman Invokes An Old Line From Warren Buffett When Explaining Why He Fired Off Those Letters To JCPenney's Board
Reuters/ Shannon Stapelton
CNBC's Andrew Ross Sorkin caught up with Ackman this morning following his resignation.
"I elevated a bunch of issues that are critically important by making them public. We came to an agreement on Ron Tysoe," Ackman told Sorkin, adding, "The board will now function more effectively without the noise."
Last week, he fired off letters to the board demanding that they find a new CEO to replace interim CEO Mike Ullman and that chairman Tom Engibous resign.
It appears that part of his reasoning for sending the letters is that he was taking what he believed to be a Warren Buffett-style investing approach. (He has compared his investment strategy to Buffett before.)
Sorkin reports:
His basis in the company is $25 per share. So it is not clear that he has any ambition to sell these shares at a low price. One other thing, he quoted Warren Buffett.
Ackman, who runs $12 billion
He had reportedly threatened to sell his stake if the board didn't replace Ullman. That doesn't seem to be the case, though.
"If I wanted to sell, I could have sold all along during the quarterly window," Ackman told Sorkin.
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