Hedge Funds

Ackman aims to boost McDonald's stake

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Bill Ackman's $2 billion Pershing Square Capital Management would like to increase its stock ownership in McDonald's by as much as $793.8 million and is currently seeking approval from the Federal Trade Commission to do so.

Pershing Square, of New York, currently controls about 4.5% of McDonald's stock through deep in-the-money stock options. If the FTC approves the firm's Hart-Scott-Rodino notification, which was filed last month, Pershing Square could purchase nearly an additional $800 million in McDonald's stock (roughly 1.8% of the company's market capitalization) or convert its existing options holdings into stock. Either action would increase Pershing's voting