Bill Ackman Pushing for Board Seats to Control ADP -- Update
04 Agosto 2017 - 10:59AM
Dow Jones News
By Justina Vasquez
Automatic Data Processing Inc. said activist investor and
hedge-fund manager Bill Ackman is seeking to take half of its board
seats and replace Chief Executive Carlos Rodriguez, in the latest
of recent examples of activist investors looking to force changes
at companies.
Shares of ADP are up 2.5% at $114.50 in premarket trading
Friday.
ADP said New York-based Pershing Square Capital Management LP
asked earlier this week to extend the Aug. 10 deadline to nominate
directors to its board by 30 to 45 days. Mr. Ackman told the
company he wants to nominate himself and four other directors to
the 10-person board. The request also noted that Mr. Rodriguez, who
has served as CEO since November 2011, should be replaced.
Activists and companies often extend a nomination deadline in
order to negotiate changes privately without needing to launch a
public shareholder fight.
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.
ADP also argued that because its shareholder return under Mr.
Rodriguez's tenure as CEO has been stronger than Mr. Ackman's
performance at Pershing and no executive changes are needed.
"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 09:44 ET (13:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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