Lampert, Ackman Face Off Over Sears

Date: Wednesday, May 7, 2008
Author: HFN Daily Report

Sears head Edward Lampert has failed to impress hedge fund kingpin William Ackman.

The Sears annual meeting marked a showdown between Lampert and Ackman.

Ackman is head of Pershing Square Capital Management, the fourth-largest shareholder in Sears with a 4.7% stake.

"We think Sears is undervalued," Ackman said, according to a report. "Your disclosure is not as forthcoming as it should be."

More transparency is needed, the report claimed Ackman said. He also questioned if Sears is going to sell off its businesses. Lampert skirted the question.

Lampert, head of ESL Investments, countered that the market has not improved.

Ackman later complained to The Chicago Tribune that he had to travel to attend the meeting because Lampert will not speak to him over the phone.

In 2006, Ackman stopped Lampert from taking control of Sears Canada. Lampert is chairman of Sears and 50% owner of the company.