HEDGE fund manager William Ackman, who last year tried to force McDonald’s Corp to spin off its 8000 company-owned cafes, is again targeting the hamburger-chain giant.
A McDonald’s regulatory filing on Friday said three investment funds managed by Pershing Square Capital Management LP told it in mid-August of plans to acquire more than 22 million shares worth about $793.8 million. This was within days of Ackman selling the 105,000-share stake it used to pressure McDonald’s executives into providing more financial information about cafes and to sell about 1500 of them to franchisees or investors.
Ackman declined to comment on his plans; but on his record as an investor in other companies, such as Wendy’s International, he is unlikely to be a passive investor. In a bid to boost Wendy’s share price he forced chain executives to spin off the Tim Hortons doughnut chain. The last stage of that spin-off is to be finished on September 29.
Wendy’s shares closed on Friday at $63.87, down 3 on the New York Stock Exchange. They have risen more than 50 per cent in the past year.
McDonald’s said it disclosed Ackman’s plans to comply with SEC requirements as investors decide this autumn whether to exchange McDonald’s shares for those of Chipotle Mexican Grill. McDonald’s is buying back its shares as it disposes of its remaining stake in the Mexican cafe chain.
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