A source close to the situation confirmed to me that Pershing Square Capital--a fund run by activist investor Bill Ackman--has been buying stock in discounter Target and has accumulated more than five percent of outstanding shares.
The Securities and Exchange Commission filing of that purchase is expected to be made next week.
The source told me that Ackman's interest is not necessarily in spinning off Target's credit card division but would not rule it out. The source did say that Ackman will be active for change at the discounter but would only elaborate to say "this will be fun." Ackman declined to comment.
That news added to the already substantial gain in Target shares following today's same store sales numbers. While Target reported comps at the low end of the range--up 3.3%--they forecast sales in July would come in between 5-7%.