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Tuesday, March 5, 2013

Vornado sale of JC Penney shares adds to growing pressure on CEO, (NYSE: VNO)

J.C. Penney Co Chief Executive Ron Johnson has only to the end of the year to turn around the ailing retailer and stem a massive decline in sales or risk being fired, a person familiar with the board's thinking said on Tuesday.Directors are leaving little doubt that there is a fresh sense of urgency after Penney reported terrible holiday sales numbers last week and board member Steven Roth's Vornado Realty Trust dumped 10 million shares in Penney.That move, more than anything else so far, is being interpreted as a clear shot across the bow to Johnson that investors' patience is running out, the person familiar with the board's thinking said, speaking on condition of anonymity because the board's discussions are private.Penney shares plunged 10.6 percent to $14.96 on Tuesday in the wake of that Vornado share sale, touching lows last seen four years ago. A Penney spokeswoman declined to comment.

Vornado Realty Trust (Vornado) is an integrated real estate investment trust (REIT). Shares of VNO traded higher by 3.38% or $2.75/share to $84.11. In the past year, the shares have traded as low as $72.64 and as high as $88.50. On average, 973427 shares of VNO exchange hands on a given day and today's volume is recorded at 2304104.