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Ackman Sells J.C. Penney Stake To CitiGroup

Hedge fund manager William Ackman, who had been the biggest shareholder in J.C. Penney Co Inc., has sold his entire stake in the retailer, Reuters reported.

Ackman’s Pershing Square Capital Management sold 39.1 million shares, or 18% of the company, to Citigroup Inc., which is now offering the shares to other investors, the company and the $11 billion hedge fund said in separate announcements.

This decision by Ackman pushed Penney’s shares down 2.6%, to $13, in after-hours trading, Reuters reported.

Pershing Square said in a statement Citi’s offering of J.C. Penney common stock was priced to the public at $12.90 per share and was expected to close on August 30.

J.C. Penney store sales fell 25% in the last fiscal year and the company’s share price has dropped 32% since January, according to Reuters.