Soros reveals stake in J.C. Penney; stock surges

  @jtotoole April 26, 2013: 7:13 AM ET
george soros jcpenney

Soros disclosed a passive stake in J.C. Penney on Thursday.

NEW YORK (CNNMoney)

George Soros has given ailing J.C. Penney a big vote of confidence.

The hedge fund mogul revealed a 7.9% stake in the retailer on Thursday. The investment is worth nearly $265 million at Thursday's closing price of $15.24.

Soros is now the fourth-largest shareholder in the company, according to Bloomberg, and has taken a passive stake.

J.C. Penney (JCP, Fortune 500) shares surged on the news in after-hours trading, rising more than 7%. The rally continued Friday, with shares jumping nearly 9% in premarket trading.

Related: Penney wins round in Martha Stewart court fight with Macy's

Soros joins fellow hedge-fund celebrity Bill Ackman as one of J.C. Penney's major shareholders.

Earlier this month, the troubled retailer announced that CEO Ron Johnson was leaving the company after just a year and a half.

Johnson, a former Apple (AAPL, Fortune 500) executive, had instituted ambitious changes to J.C. Penney stores in an attempt to remake the brand. Sales plummeted during his tenure, sinking 28% in the fourth quarter from a year earlier.

J.C. Penney tapped Mike Ullman, Johnson's predecessor as CEO, to take the reins once more. The company has since consulted with investment firm Blackstone in an attempt to raise up to $1 billion and remain solvent. To top of page



Join the Conversation
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.