Tags: Ackman | Pershing | options | P&G

Ackman's Pershing Square Buys Options on P&G Shares

Thursday, 15 Aug 2013 06:46 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Bill Ackman’s Pershing Square Capital Management LP purchased options giving it the right to buy 25 million shares of Procter & Gamble Co., while reducing its holdings of the actual stock by 68 percent.

Pershing Square slashed the number of shares held in P&G by 19 million, to 8.94 million in the quarter ending in June, according to a filing Wednesday. Including the call options, the company has exposure to about 33.9 million P&G shares, compared with 28.9 million in the previous quarter.

Ackman bought a $1.8 billion stake in P&G about a year ago and pushed for the replacement of Chief Executive Officer Bob McDonald, who stepped down in May. Investors sometimes use options as a way of tying up less cash to hold a stake, since they can be purchased for a fraction of the price of a common share.

P&G, based in Cincinnati, fell 0.9 percent to $80.48 at the close in New York. The shares have gained 19 percent this year.

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved