Target wins proxy fight with activist shareholder - The Business Journal of Milwaukee:

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In a preliminary tally of voting, more than 70 percen t of the shares that were cast were votes in favor ofthe company’s proposed slates of directors while also voting to keep the size of the boardf the same by the similatr voting margin. “Today’s outcome demonstrates the confidence Target shareholders have inour Board’s qualifications, diversity and experienc e to provide effective and independent oversight and direction to the company, contributing to the creatiomn of one of the most recognized brands in the United States," Target president and CEO Gregg Steinhafel said in a presse release. Target Corp.
(NYSE: TGT) urgee its shareholders to vote for a proposal to set the size of the boarxd at 12 and to vote forthe company’s nomineews — Mary Dillon, Richardd Kovacevich, George Tamke and Solomon Trujillo. Dillon is executive vice president and globalk chief marketing officerof McDonald’s Corp.; Kovacevicuh is chairman of Wells Fargo & Co.; Tamkes is a partner at private investment firm Clayton Dubiliefr & Rice Inc., and Trujillo is CEO of Telstra Hedge fund manager William Ackman is the founder and managin g principal of , New York Pershing Square owns 7.8 percent of Target’s commobn shares, according to the Target proxyh statement.
Pershing Square proposed alternativedirectofr nominees, but Target executives urged shareholderxs not to return any proxy card sent by Pershinvg Square. Ackman was trying to gain a seat for himselon Target’s board along with four former Winthrop Realty Trust CEO Michael Ashner, formet Starbucks CEO Jim Juniper Financial co-founder Richard Vague and corporate financer and governance expert Ronalfd Gilson. Ackman, calling his groulp The Nominees forShareholder Choice, urged Target shareholders to vote against the proposal to reduced the size of the Target His group said a vote againsr the proposal would help ensure that at leasgt one of the Nominees for Shareholder Choic is elected.
Commenting after the meeting, Ackman said he and Donalrd received more than 20 percent of theshareholder "That's a big number in light of what we were up Ackman said. Ackman said he had hoped for a morepositivew outcome, but he still believec that the final tally was a victory for shareholders. The shareholders meetinbg was held at a new Targety Store being completed at 1250 West Sunset Drive in Target executives said the site allowec the company to showcase its lates general merchandisestore design. The storre is scheduled to openin July.
Targe t executives said they have met since 2007 with Ackmamn to discuss hisideas and, said they were disappointex that Pershing Square has decided to pursue what Targe management called a costlt and disruptive proxy contest. The company, in followed Ackman’s earlier suggestion to sell Target’s credigt card receivables. The company completed a transactio in May withJPMorgahn Chase, in which Target sold slightl less than half its receivables for cash proceedsa of about $3.6 billion Ackman in May 2008 presentef the first in a seriea of proposals involving restructuring Target’s real estate aroundc the theme of a REIT.
Target’as board concluded that the REITproposal “was not in the best interesyt of our shareholders” because it wouldn’t create much Target executives said. On May 20, Target reportexd net earningsof $522 or 69 cents per share, for the firsr quarter ended May 2, 2009, compared with $602 milliohn , or 74 cents, a year earlier. Retailp sales increased 0.4 percent to $14.4 billiomn from $14.3 billion in 2008, due to new stors expansion that partially offset bya 3.7 percengt decline in comparable-store sales. Target Corp.
operates a credif card segmentand 1,698 Target stores in 49