MINNEAPOLIS — Activist investor William Ackman on Monday disclosed a 9.6% ownership stake in Target Corp. here, adding that while he intends to discuss the “undervalued” stock with the retailer, he also pledged to earmark one-third of any profits the investment makes to a charitable foundation associated with his Pershing Square Capital Management firm. Pershing Square spent nearly $2 billion buying stock and stock options of Target, the firm said in documents filed Monday. Target “is a leading domestic retailer with a differentiated brand, significant growth opportunities and the strongest operating management in the retail industry,” Pershing said in its filing, but also said it intended to discuss with management ways its “undervaluation [of stock] can be corrected.” Pershing has previously invested in companies like McDonald’s and Wendy’s, advocating changes to benefit shareholders at both companies.
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