(AP) J.C. Penney's biggest investor, William Ackman, plans to raise up to about $504.4 million from the sale of his entire stake in the struggling department store operator.
Late Monday Pershing Square Capital Management's Ackman disclosed in a regulatory filing that he was going to sell his nearly 18 percent interest or 39.1 million shares in the Plano, Texas, company.
On Tuesday, Ackman said that the shares will be priced at $12.90 each, about 3 percent below Monday's $13.35 closing price.
The move comes two weeks after Ackman resigned from J.C. Penney Co.'s board as part of a deal to resolve an unusually public battle between the activist investor and the retailer.
J.C. Penney won't receive any proceeds from the offering, which is targeted to close on Aug. 30.
The company's stock fell more than 2 percent in premarket trading.