Target rejects REIT proposal

Target Corp. said it would not implement a major shareholder’s proposal to create a real estate investment trust, saying the potential value it would create was “highly speculative.”

The retailer said that after evaluating the proposal from investor William Ackman, the company wouldn’t pursue the deal given the costs, risks and loss of financial flexibility.

Ackman, who runs hedge fund Pershing Square, had proposed separating the land Target owns underneath its stores and distribution centers.