NEW YORK (AP) - J.C. Penney's largest investor and former board member, William Ackman of Pershing Square Capital Management, is selling his nearly 18 percent stake in the company.
The move to sell 39.1 million shares of the company, announced in a regulatory filing, comes two weeks after Ackman resigned from J.C. Penney's board. That was part of a deal to resolve an unusually public battle between the activist investor and the struggling department store operator.
The planned sale comes as Penney is trying to recover from a botched up transformation plan that was spearheaded by its former CEO Ron Johnson and resulted in disastrous results.
The news sent shares down nearly 3 percent to $12.99 per share in after hours-trading after closing down 15 cents to $13.35 in the regular session.
Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.