Hedge Fund in Talks With Target on Board Seats

New York City Activist hedge fund manager William Ackman is in talks with Target Corp. about naming potential directors to the discount retailer's board, according to a Securities and Exchange Commission filing on Thursday.

Ackman did not disclose the number or identity of the potential board nominees. The investor said his firm may boost or reduce his stake in the company or take other action, depending on the outcome of the talks and other factors.

In the filing, Ackman said he continues to believe in the "fundamental investment case for Target" and thinks its stock is currently undervalued.

Ackerman’s hedge fund, Pershing Square Capital Management LP, holds 58.4 million Target shares, which represents a 7.8% stake in the chain.