Bill Ackman Pushing for Board Seats to Control ADP
04 Agosto 2017 - 10:13AM
Dow Jones News
By Justina Vasquez
Automatic Data Processing Inc. has rejected a request from Bill
Ackman's Pershing Square Capital Management LP to take half of its
board seats, in the latest of recent examples of activist investors
looking to force changes at companies.
Shares of ADP are up 2.9% at $115 in premarket trading
Friday.
ADP said the New York-based hedge fund had asked earlier this
week to extend the Aug. 10 deadline to nominate directors to its
board by 30 to 45 days. With the extension, Mr. Ackman would
nominate himself and four other directors to the 10-person board.
The request noted that ADP Chief Executive Carlos Rodriguez "should
be replaced," citing company overvaluation, the company said.
The Roseland, N.J., human-resources software company said its
board unanimously rejected the "last-minute" request, as the
deadline for board nominees has been public for nearly a year. Mr.
Ackman told the company that he has an 8% stake in ADP, largely
through derivatives.
Activists and companies often extend a nomination deadline in
order to negotiate changes privately without needing to launch a
public shareholder fight.
"We believe our current board has an effective balance of
leadership continuity and fresh perspectives" that will help
continue delivering value to shareholders, the company said in a
statement.
(END) Dow Jones Newswires
August 04, 2017 08:58 ET (12:58 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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