Vornado sells entire J.C. Penney stake for $13 per share
(Reuters) - Vornado Realty Trust (VNO.N) has sold its 13.4 million shares in J.C. Penney Co Inc (JCP.N) for $13 a share, ending a three-year investment in the struggling department store operator it had pushed to renew itself.
Vornado, which had told investors last week it would soon sell its stake, owned 6.1 percent of shares, which it sold in a block trade to Citigroup Global Markets Inc, according to a regulatory filing on Friday.
In the autumn of 2010, Vornado took a 9.9 percent stake in Penney concurrently with activist investor William Ackman's Pershing Square Capital Management, and both pushed the retailer to offer trendier merchandise and try to attract a younger shopper.
During the autumn of 2010 Penney shares were trading in the low to mid $20s. Pershing Square sold its stake last month.
Last year sales at Penney fell 25 percent, and the company has been struggling to stabilize sales this year. Penney shares have fallen by about one third this year.
Shares of J.C. Penney ended down 1.4 percent at $12.96 on Friday and Vornado's stock fell 2.6 percent to $86.32.
(Reporting by Phil Wahba in New York; Editing by Kenneth Barry)