Pershing capital eyes $793.8m investment in McDonald's Corp

Nation's Restaurant News, Sept 11, 2006

OAK BROOK, ILL. -- Pershing Capital Management LP, the New York hedge fund founded by former dissident McDonald's shareholder William Ackman, said it was planning to make a $793.8 million investment in the burger giant.

In a filing with the U.S. Securities and Exchange Commission, McDonald's said Pershing reported that it intended to file the required notifications that would enable it to buy at least that much equity in the Oak Brook-based restaurant company.

Based on McDonald's recent share price of about $36.50, Pershing's investment would give it a nearly 1.8-percent stake in the world's largest restaurant chain.

Ackman, who is Pershing Capital's managing partner, previously had locked horns with McDonald's officials when he sought to have them restructure the chain by spinning off its company-owned restaurant arm and investing in developing markets. Ackman backed off from that proposal earlier this year after McDonald's executives said they would adopt some of his recommendations.