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Biggest shareholder unloads J.C. Penney

(Reuters) – Hedge fund manager William Ackman, the biggest shareholder in J.C. Penney Co Inc, said on Monday he had sold his entire stake after his campaign to overhaul the retailer failed.

Ackman’s Pershing Square Capital Management sold 39.1 million shares, or 18 percent of the company, to¬†Citigroup Inc, which is now offering the shares to other investors, the company and the $11 billion hedge fund said in separate announcements.

The decision by Ackman, who stepped off the board two weeks ago amid a growing rift over corporate strategy, to dump his stake pushed Penney’s shares down 2.6 percent to $13 in after-hours trading.