Retail chain J.C. Penney has agreed to allow Vornado Realty Trust to increase its stake in the company, relaxing a restriction put in place last year to limit the number of shares the real estate investment trust could buy, Dow Jones reported.
The change of heart, disclosed in a filing by J.C. Penney yesterday, is just the most recent piece of evidence in the deepening relationship between Penney and Vornado. It allows Vornado to increase its stake to 15.4 percent from 9.9 percent, including through a synthetic long position” using the derivatives market. Vornado holds a seat on J.C. Penney’s board, Dow Jones said.
Vornado and Bill Ackman’s Pershing Square Capital both have stakes in the department store chain. Penney struck a similar deal with Pershing last month.
In Manhattan, J.C. Penney has a location at 901 Sixth Avenue and 33rd Street. [Dow Jones]