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The activist fund will be capped at $1 billion and will invest alongside the New York-based firm’s main hedge funds, which plan to invest about 15 percent of their capital in the same stock. Pershing Square manages about $12 billion, meaning the total investment could approach $3 billion. The firm, which already has a position in the stock, plans to buy more than 5 percent of the company and will talk to the board and management to bring about change.

$2.8 billion total Pershing + activist fund investment will represent more than 5% of the company, so less than $56 billion market cap, right? Deere would be too small. Walgreen would be the right size but it is not particularly cheap, and not cheaper than its main competitors (CVS, Rite-Aid). DTV, at $36 billion, is a bit on the small side. HPQ would be just right, at $51 billion, and bringing change to this management seems more appropriate than for the other guesses, although I have more trouble seeing the value.

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