Wow… a 82% loss in Target (TGT) for Leucadia (LUK)
In June 2007, the Company invested $200,000,000 to acquire a 10% limited
partnership interest in Pershing Square, a newly-formed private investment
partnership whose investment decisions are at the sole discretion of Pershing
Square’s general partner. The stated objective of Pershing Square is to create
significant capital appreciation by investing in Target Corporation. The Company
recorded losses under the equity method of accounting from this investment of
$77,700,000 and $85,500,000 in 2008 and 2007, respectively, principally
resulting from declines in the market value of Target Corporation’s common
stock. At December 31, 2008, the book value of the Company’s investment in
Pershing Square was $36,700,000.
Disclosure (“none” means no position):none
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3 replies on “Leucadia Reports 10K: Discloses Pershing Square Target Loss $$”
Don’t worry, Ackman’s going to get his peeps on the TGT board and will save them and himself and the universe.
Ackman has an unhealthy fascination with real estate–and bookstores.
the only reason im a little worried, just a little but still have considered investing in tgt com stock, is why Ackman would use a vehicle like this and have it only for tgt, that is a hell of alot of money to throw at one thing so specific. don’t get me wrong leucadia could have invested the 200mm into anything at that time and they still would have been down alot but it would have been a little more diversified, at least a little. but hey, if they put 200mm up for such a specific investment, there must be some real truth/substance etc. to whatever Ackman is proposing. i mean these three didnt start trading online a couple weeks ago
enrico,
personally, i would avoid target unless he can get on the board. not sure they really “get” his plan