J.C. Penney Co. Inc. gave Vornado Realty Trust the go ahead on Friday to boost its stake in the retailer to 15.4 percent from 9.9 percent, though the investor will not see its voting rights increase along with the investment.
The move, detailed in a filing with the Securities and Exchange Commission, is similar to Penney’s deal last month, which gave activist investor William Ackman the OK to take on a “synthetic long position” that might increase his stake in the retailer to up to 26.1 percent while restraining his voting rights.
Those deals amend the poison pill shareholder plan Penney’s instituted last October to fend off Ackman and Vornado, which had quietly snatched up 26.4 percent of the company.
Now Ackman, who runs Pershing Square Capital Management, and Vornado chairman Steven Roth are on the company’s boards and together they can raise their ownership stake in the company to 41.5 percent.
Shares of Penney’s slipped 2 percent to $27.44 Monday.