As he ratchets up his war of words with JCPenney's board, Bill Ackman is putting his money where his mouth is.
As reported by The Post yesterday, the hedge-fund billionaire has threatened to liquidate his 18-percent stake in the struggling retailer if the board doesn't step up its search to replace interim CEO Mike Ullman.
Likewise, The Post has learned that Ackman is prepared to back Penney with fresh financing if it bows to his demand to name a new CEO within 30 to 45 days.
"Bill has been totally sidelined by the board and cut off from information, and he says he can't remain an investor under those conditions," according to a source close to the situation.
"If he gets his way, of course, it's a different story," the source said.
Ackman sent a lengthy e-mail to Penney's board on Thursday, following a pair of testy letters during the past week. He made his initial threat to sell his Penney stock at a July 22 board meeting, sources said. Representatives for Ackman and Penney didn't respond to requests for comment.
Ackman is using his cash as a cudgel despite public pledges earlier this year to stick with his Penney investment until the company recovers from a disastrous turnaround bid by former CEO Ron Johnson.
Penney blasted Ackman on Thursday, noting that he had spearheaded the hire of Johnson, whose move to eliminate coupons and sales events spurred a $1 billion loss last year and sent sales tumbling 25 percent.
Yesterday, Penney chairman Thomas Engibous hit back at Ackman's latest salvo. He denied charges that board members weren't being consulted on key decisions, and said the CEO search was continuing at "an appropriate pace."
"Mr. Ackman's statements are misleading, inaccurate and counterproductive," Engibous said.
Starbucks CEO Howard Schultz also blasted Ackman yesterday while backing Ullman, who sits on the board of Starbucks.
"What's so perverse here is that [Ullman is] trying to save the company that Bill Ackman has basically done severe damage to," Schultz told CNBC, citing Ackman's hire of Johnson.
Nevertheless, Ackman yesterday won the public support of fellow hedge-fund tycoon Richard Perry as he looks to replace Engibous as chairman with former Penney CEO Allen Questrom. Perry disclosed a 7.3-percent stake and pledged to back Ackman's bid to hire Foot Locker CEO Ken Hicks to lead Penney.
Questrom said Thursday he would mull becoming chairman if the right CEO is found.
Penney shares have see-sawed as the boardroom brawl escalates. The stock yesterday closed 5.8 percent lower to $12.87, erasing most of a Thursday rally that was spurred by Ackman's public demand for a new CEO.
In his latest letter, Ackman accused Ullman of cutting off his hedge fund Pershing Square Capital Management from the retailer's financial data in recent months. Ackman said Ullman also fired consulting firm Alix Partners, which was brought in to help manage the company's cash.
jcovert@nypost.com
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