Target no longer considering Pershing Square's real estate structure ideas

By Lisa Kerner

Charlotte, N.C., Nov. 21 - Target Corp. said it will not continue to pursue various real estate structure ideas proposed by Pershing Square Capital Management, LP over the past six months.

The company made the decision following a review of Pershing Square's proposed transaction by Target management, the board of directors and outside advisers, including Goldman Sachs.

According to Target, the potential value, if any, "is highly speculative and insufficient to merit pursuit of a transaction given the costs, strategic and operating risks, and loss of financial flexibility related to executing the proposed transaction."

"Target does not share Pershing Square's perspective that execution of this proposed transaction will generate measurable shareholder value over time and believes the risks, particularly in light of the serious challenges facing our retail and credit card segments in 2008 and 2009, are significant," Target president and chief executive officer Gregg Steinhafel said in a company news release.

Pershing Square Capital has beneficially acquired approximately 10% of the Minneapolis-based retailers' outstanding stock since April 2007, it was previously reported.

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