Pershing reports economic exposure to 12.63% of Target stock

By Lisa Kerner

Charlotte, N.C., Jan. 16 - Target Corp. investors led by Pershing Square Capital Management, LP reported it now has economic exposure to 104,916,080 shares, or 12.63%, up from 104,701,613 or 12.6% previously reported.

The investors said they have contractual agreements with 10 broker-dealer counterparties with regard to stock- and cash-settled call options and/or cash-settled total return swaps referring to Target's common stock.

Pershing reported the purchase of 3,865,100 shares of Target stock between Jan. 11 and Jan. 15, priced between $49.95 and $50.49 for a total of $193,579,819.

The investor sold 6,150,633 American-style call options between Jan. 11 and Jan. 15 for a total trade amount of $54,324,214. Strike price for the options was $48.5612 and the expiration date is Oct. 17, 2008.

Pershing bought cash-settled equity swaps giving economic exposure to 2.5 million shares between Jan. 4 and Jan. 11 for a total trade amount of $125,524,450. The unit prices ranged from $49.3256 to $51.2082. The swaps expire on July 31, 2009, according to a schedule 13D filing with the Securities and Exchange Commission. Pershing Square says it has no beneficial ownership in the underlying securities since it does not control voting.

The investors beneficially own 80,511,667 shares or 9.69% of Minneapolis-based retailers' outstanding stock.

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