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Billionaire real estate mogul Steven Roth's real estate investment trust Vornado Realty is also a huge stakeholder.
Vornado Realty owned 23,400,000 shares, or a 10.67% stake as of October 8, 2012, according to 13D data compiled by Bloomberg.
Roth, 70, who was named to JCPenney's board of directors at the same time as Ackman, was called out by an analyst during his company's fourth quarter earnings call yesterday morning over his JCP investment.
In short, the analyst asked him if being on JCP's board compromised his independence to potentially exit that investment if it was necessary to do so. He responded with "Yes."
Remember, this was before the retailer released its abysmal quarterly earnings yesterday.
Yesterday
Anyway, here's an excerpt of the transcript from the Vornado call posted by Seeking Alpha:
Michael Knott - Green Street Advisors, Inc., Research Division
Okay. And then last question would be for you, Steve. I know you're committed to the J.C. Penney investment. But just a question, does being on the Board there somewhat compromise your independence, so to speak, to potentially exit that investment if that was deemed to be the best thing to do?
Steven Roth - Chairman and Chairman of Executive Committee
Yes.
Michael Knott - Green Street Advisors, Inc., Research Division
Yes, it does compromise?
Steven Roth - Chairman and Chairman of Executive Committee
Yes. The answer to your question, Michael, is yes.
Michael Knott - Green Street Advisors, Inc., Research Division
Is it the best thing for Vornado, for you to be on the Board there?
Steven Roth - Chairman and Chairman of Executive Committee
I'm not -- I can't comment on that.
What's more is Roth also acknowledged on the earnings conference call that JCPenney is struggling.
Here's the excerpt via Seeking Alpha:
"...J.C. Penney is a newer investment which is struggling right now. J.C. Penney has its earnings call this afternoon, I think after the market closes. I'm a Director of J.C. Penney so I really can't talk very much about it, but J.C. Penney is an investment which is in progress now and I -- really, it's inappropriate for me to talk about what our holding period might be or what our future plans in terms of sale or not sale and the timing. It's just not appropriate in that particular investment..."
Vornado Realty was last trading down more than 2.6%.