Ackman Criticizes ADP's 'Bed Bug' Letter -- Update
01 Novembro 2017 - 10:37AM
Dow Jones News
By Cara Lombardo
William Ackman, the activist investor fighting for three board
seats at Automatic Data Processing Inc., criticized the company for
saying it was going to report him to the Securities and Exchange
Commission for spreading what it called "false and misleading"
claims.
"Putting out a press release saying that you are reporting me to
the SEC is a move designed to smear my reputation for a tactical
advantage in a proxy contest," Mr. Ackman wrote in a letter to
ADP's board of directors Wednesday. "It is not an appropriate thing
to do, nor is it fair play."
Mr. Ackman, founder of Pershing Square Capital Management LP,
took a $4 billion stake in ADP in August and is pushing for board
seats for himself and two of his nominees in a Nov. 7 election. He
has argued the company has focused too much on meeting revenue
guidance and not enough on developing new technology.
In a report last week, proxy adviser Institutional Shareholder
Services recommended shareholders support two of ADP's three board
candidates for those seats, which would leave an opening for Mr.
Ackman but not each of his nominees. That prompted Mr. Ackman to
write an 18-page letter to ISS, accusing ADP of providing ISS
"nonpublic, inaccurate and misleading information, claims and
arguments."
ADP said Tuesday it rejects statements made by Mr. Ackman and
that it planned to file a complaint with the SEC.
The company reiterated its position Wednesday and issued another
statement criticizing Pershing Square for continuing to "distort
the facts" throughout the proxy contest.
ISS also said in a statement Tuesday its longstanding policy
isn't to elicit, receive or use nonpublic information in its
research. That process was followed with respect to the pending ADP
proxy contest, ISS said, and the company stands by its report.
Mr. Ackman said in his response Wednesday that writing letters
to the SEC complaining that the other side has put out bad
information is commonplace in proxy contests.
"They are called 'bed bug letters,' and are entirely ordinary
course in every proxy contest," he said.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
November 01, 2017 08:22 ET (12:22 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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