NEW YORK (AP) J.C. Penney Co. and its largest shareholder and former board member William Ackman have made a deal that sets terms for allowing him to unload his stake in the company.
The agreement, filed with the Securities and Exchange Commission Friday, comes three days after Ackman resigned from Penney's board as part of a deal to resolve an unusually public battle between the activist investor and the struggling department store.
Ackman's Pershing Square Capital Management has 17.7 percent stake in Penney.
Under the deal, Ackman can make up to four requests to the company to register the sale of his shares. The agreement terminates when he owns less than 5 percent of the company's stock.
Penney's stock fell 45 cents, or 3 percent, to $13.38 in morning trading.