FedEx stock rises on speculation of $1B investment
FedEx Corp., the biggest air cargo airline, rose the most in nine months on speculation that it may be an investment target for William Ackman's Pershing Square Capital Management LP.
The stock increased 4.4 percent at the close in New York trading for the largest gain since Oct. 10.
Attention focused on FedEx when Ackman outlined in a letter to investors his intention to buy a stake of as much as $1 billion in a large-capitalization, investment-grade U.S. company he didn't identify. FedEx, with a market value of about $33 billion, is in the midst of a cost-cutting restructuring at FedEx Express, its largest unit.
Ackman declined to comment in an e-mail. Jess Bunn, a spokesman for Memphis-based FedEx, also declined to comment.
“The business is simple, predictable, and free-cash-flow-generative, and enjoys high barriers to entry, high customer switching costs and substantial pricing power,” Ackman told investors.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- UPMC offering buyouts to 3,500 employees in cost-cutting move
- Citizens Bank executive kept busy by spinoff
- Billionaires club to decline as they retire
- Pittsburgh gasoline prices nearing $3
- Tight supply pushes home prices higher
- Air bag fix may be more elusive than hoped
- Beaver Valley nuclear reactor returns to service
- Media heads rule ranks of best-paid CEOs
- Murray Energy expects to lay off as many as 1,800 more
- Greek debt fears, surge in dollar nip at stock market
- Energy investors push green tactics