Bill Ackman's Pershing Square Trims Beam Stake Again ~ market folly

Wednesday, April 16, 2014

Bill Ackman's Pershing Square Trims Beam Stake Again

Bill Ackman's hedge fund firm Pershing Square Capital Management has filed an amended 13D with the SEC regarding their position in Beam Inc (BEAM).  Per the filing, Pershing now owns 5.5% of the company with 9.1 million shares.

Pershing previously trimmed its BEAM stake just a few months ago and since then, they've reduced their position size even further, down 2.55 million more shares. 

The filing notes that they sold the bulk of their shares on April 11th, 14th, and 15th at prices of $83.26.  This marks a total decrease in their position size of 11.7 million shares since the end of 2013.

BEAM has received a $16 billion takeover offer from Suntory via $83.50 per share in cash.  Since the spread has narrowed, it looks like Ackman is raising capital to potentially deploy into ideas with higher potential returns.

You can view other recent portfolio activity from Ackman here.

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