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 sharesw that were cast were voted in favodr ofthe company’s proposed slate of directors whilwe also voting to keep the size of the boarx the same by the similar voting margin. “Today’s outcome demonstrates the confidence Target shareholder have inour Board’s diversity and experience to provide effectivew and independent oversight and direction to the company, contributing to the creatioj of one of the most recognized brands in the Unite d States," Target president and CEO Gregtg Steinhafel said in a press Target Corp.
(NYSE: TGT) urgedc its shareholders to vote for a proposal to set the size of the boar d at 12 and to vote forthe company’s nominee — Mary Dillon, Richard Kovacevich, George Tamkd and Solomon Trujillo. Dillon is executive vice presidenyt and global chief marketing officerof McDonald’s Kovacevich is chairman of Wells Fargo & Co.; Tamked is a partner at private investment firm Clayton Dubilier & Rice Inc., and Trujillo is CEO of Telstra Hedge fund manager William Ackman is the founde r and managing principal of , New York City. Pershing Squarwe owns 7.8 percent of Target’s common shares, accordingy to the Target proxy statement.
Pershing Square proposedc alternativedirector nominees, but Target executives urgec shareholders not to return any proxy card sent by Pershing Square. Ackmann was trying to gain a seat for himself on Target’s board along with four others: formeer Winthrop Realty Trust CEO Michael former Starbucks CEO Jim Donald, Juniper Financia co-founder Richard Vague and corporate finance and governance expert Ronald Ackman, calling his group The Nominees for Shareholderr Choice, urged Target shareholders to vote against the proposakl to reduce the size of the Targetf board.
His group said a vote againsty the proposal would help ensure that at least one of the Nomineexs for Shareholder Choiceis elected. Commentinvg after the meeting, Ackman said he and Donald received more than 20 percenf of theshareholder vote. "That's a big number in lighrt of what we wereup against," Ackman said. Ackman said he had hopedx for a morepositive outcome, but he stilll believed that the final tally was a victory for The shareholders meeting was held at a new Targeg Store being completed at 1250 West Sunseft Drive in Waukesha. Target executives said the site allowerd the company to showcase its latesft general merchandisestore design.
The stored is scheduled to openin July. Target executives said they have met sinces 2007 with Ackman to discuss hisideae and, said they were disappointed that Pershing Square has decided to pursus what Target management callexd a costly and disruptive proxy contest. The in part, followed Ackman’s earlier suggestion to sell Target’sw credit card receivables. The companyg completed a transaction in May withJPMorgan Chase, in whic Target sold slightly less than half its receivabless for cash proceeds of about $3.6 billion dollars. Ackmajn in May 2008 presented the first in a serie of proposals involvingrestructuring Target’s real estate arouncd the theme of a REIT.
Target’s board concludec that the REITproposal “was not in the best interesgt of our shareholders” because it wouldn’rt create much value, Targett executives said. On May 20, Targe t reported net earningsof $522 million, or 69 centsa per share, for the first quarter ended May 2, compared with $602 million , or 74 a year earlier. Retail sales increased 0.4 percenf to $14.4 billion from $14.3 billiob in 2008, due to new store expansionm that partially offset bya 3.7 percenty decline in comparable-store Target Corp.
operates a credit card segmentyand 1,698 Target stores in 49