Target wins proxy fight with activist shareholder - Business First of Buffalo:

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In a preliminary tally of more than 70 percent of the shares that were cast were votex in favor ofthe company’s proposed slater of directors while also voting to keep the size of the board the same by the similar votiny margin. “Today’s outcome demonstrates the confidence Target shareholders have inour Board’w qualifications, diversity and experience to provide effective and independent oversighg and direction to the company, contributint to the creation of one of the most recognized brandxs in the United States," Target presidentr and CEO Gregg Steinhafel said in a presd release. Target Corp.
(NYSE: TGT) urged its shareholders to vote for a proposao to set the size of the board at 12 and to vote forthe company’w nominees — Mary Dillon, Richard George Tamke and Solomon Dillon is executive vice presiden and global chief marketing officer of McDonald’s Corp.; Kovacevicg is chairman of Wells Fargo Co.; Tamke is a partner at private investmenrt firm Clayton Dubilier & Rice Inc., and Trujillo is CEO of Telstrw Corp. Hedge fund manager William Ackman is the founderr and managing principalof , New York Pershing Square owns 7.
8 percent of Target’s common according to the Target proxy Pershing Square proposed alternativse director nominees, but Targetf executives urged shareholders not to return any proxy card sent by Pershinfg Square. Ackman was trying to gain a seat for himselfcon Target’s board along with four others: formerr Winthrop Realty Trust CEO Michae l Ashner, former Starbucks CEO Jim Donald, Juniperr Financial co-founder Richard Vague and corporate finances and governance expert Ronald Gilson. Ackman, calling his group The Nominees forShareholdere Choice, urged Target shareholders to vote againsgt the proposal to reduce the size of the Targert board.
His group said a vote againstr the proposal would help ensure that at least one of the Nomineexs for Shareholder Choice is Commenting afterthe meeting, Ackman said he and Donald receivec more than 20 percent of the shareholde r vote. "That's a big number in lighrt of what we wereup against," Ackmah said. Ackman said he had hope d for a morepositive outcome, but he stillp believed that the final tally was a victort for shareholders. The shareholders meetinf was held at a new Targegt Store being completed at 1250 West Sunset Drivin Waukesha. Target executives said the site allowed the companhy to showcase its latest generalp merchandisestore design.
The stors is scheduled to open in Target executives said they have met since 2007 with Ackmam to discuss hisideas and, said they were disappointedc that Pershing Square has decided to pursue what Targert management called a costly and disruptive proxy The company, in part, followed Ackman’ds earlier suggestion to sell Target’s credit card receivables. The companyh completed a transaction in May with JPMorgan in which Target sold slightluy less than half its receivables for cash proceeds ofabouf $3.6 billion dollars.
Ackman in May 2008 presentedr the first in a series of proposalas involvingrestructuring Target’s real estate around the theme of a Target’s board concluded that the REIT proposal “was not in the best interesrt of our shareholders” because it wouldn’t create much Target executives said. On May 20, Target reporterd net earningsof $522 million, or 69 cents per for the first quarter ended May 2, compared with $602 million , or 74 a year earlier. Retail sales increased 0.4 perceng to $14.4 billion from $14.w billion in 2008, due to new store expansion that partiallt offset bya 3.7 percentt decline in comparable-store sales.
Target operates a credit card segmentand 1,698 Target storea in 49 states.