Aomori Group - Vornado Sells Stake in J.C. Penney.

Aomori Group: Vornado Realty Trust sold 10 million shares of J.C. Penney common stock.

Fayetteville, NC (prHWY.com) April 1, 2013 - Aomori Group is reportedly to have announced in an investors meeting that Vornado Realty Trust sold 10 million shares of J.C. Penney common stock. Vornado raised $160 million from the stock sale, which represents about 6.1 percent of the company.

The real estate investment trust, based in New York, also revealed that they made a loss of $225 million on their total investment in J.C. Penney during the fourth quarter of last year. Vornado held a total of 23.4 million shares at the close of the year.

Vornado's share price climbed by 3.4 percent in New York trading, up to $84.11, its largest gain since the end of the last quarter of 2011. J.C. Penney in contrast hit a four year low, falling over ten percent.

Aomori Group allegedly commented that Vornado Realty Trust bought into J.C. Penney in 2010, joining Pershing Square Capital Management LP in a bid to turn around the fortunes of the company. Pershing Square remains the single largest shareholder in the Texas based department store chain.

It is believed that Ron Johnson, chief executive officer of the troubled department store, will have until the end of the year to halt the huge fall in revenues and to turn the company's fortunes around before he finds himself out of a job.

Aomori Group is understood to have remarked that J.C. Penney announced a decline in annual revenues of around 25 percent, down to $13 billion, the lowest it has been for more than 25 years.

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Tag Words: aomori group, aomorigroup, aomori

Categories: Business

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