Ackman Loads Up on Burger King (BKW)
June 22, 2012 by Paul AusickIn an SEC filing dated today, Pershing Square Capital Management L.P. chief William Ackman revealed ownership of 41,922,908 shares of newly public Burger King Worldwide Inc. (NYSE: BKW). Ackman is a well-known hedge fund manager and activist investor. Burger King returned to the public markets yesterday, selling shares at $14.50 and rising by more than 6% to close at $15.40.
Ackman’s ownership share of Burger King totals 12% of the outstanding 349,908,456 shares. Burger King only sold a total of 16% of its outstanding shares to the public, and Ackman scooped up about 75% of the shares on offer. The public offering was a complex deal that required the fast-food operator’s majority owner, 3G Capital, to agree to holding on to its 71% stake in Burger King for at least six months.
The big question, of course, is what will Ackman do in six months and one day? The fact that Burger King’s shares are up nearly another 4% today indicates that investors think he’ll make a play for an even bigger stake, in the process gaining board seats, and, perhaps, quashing the company’s aggressive expansion plans in order to return more to shareholders.
In any event, shares are trading at $15.98 about 90 minutes or so before closing today.
Paul Ausick
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.