Ackman asks Target to allow split proxy votes

By Nicole Maestri

SAN FRANCISCO (Reuters) - William Ackman of Pershing Square Capital Management, fighting for seats on the board of Target Corp (TGT.N), asked the retailer to allow its 250 largest shareholders to split their proxy votes between his slate of dissident directors and its incumbent nominees.

Pershing Square, in a filing with the U.S. Securities and Exchange Commission on Tuesday, suggested the two sides post a letter online that the top 250 shareholders -- representing more than 75 percent of Target's outstanding shares -- could use to split their votes.

"That letter would confirm precisely which nominees each of these shareholders seeks to support," Pershing Square stated.

Ackman runs Pershing Square Capital Management, which has amassed a 7.8 percent stake in Target. He is seeking to win five seats on the retailer's board at its annual meeting on May 28, while Target is running a slate of four incumbent directors.

The board has 12 members. Ackman says it should have 13, an issue that will be voted on at the meeting.

Ronald Gilson, one of Ackman's nominees, had requested in April that the discount retailer use a single ballot for the board election to allow shareholders to choose candidates from both slates, rather than only being able to choose one group of candidates or the other.

Target opposed the request, and has repeatedly called on its shareholders to vote for its board nominees.

Earlier in the day, Ackman said that he would maintain his personal investment in the retailer for at least five years if he wins a seat on its board. Ackman said his personal stake in Pershing Square IV, his fund that is exclusively invested in Target, is now worth over $55 million.