Appearing on Fast Money this evening, Doug Kass predicted that another hedge fund manager would join Bill
Ackman of Pershing Square Capital by taking a big stake in Procter & Gamble(PG), and that together they would force the company to split into two or three pieces. Kass said the stock price would increase $7-$10on such an announcement. With today’s close of $68.62, that would be quite a jump. We don’t believe Ackman has publicly pushed for a split of P&G, but he has certainly done so in the past, successfully with Fortune Brands, and unsuccessfully with McDonald’s(MCD) and Target(TGT). With a $187 billion market cap, pressuring P&G will take a significant investment. We’re skeptical whether this will happen as Kass predicts.
Disclosure: The author holds no position in any stock mentioned.
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