Ackman seeks board seats, CEO ouster at ADP

Hedge fund billionaire Bill Ackman is trying to shake up the management of his latest target

ADP also couldn't resist taking a swipe at Pershing Square's recent weak performance.

Ackman's Pershing Square Capital is seeking control of five of ADP's 10 board seats, said ADP in a Friday statement.

ADP defended Rodriguez while taking a shot at Ackman. Pershing Square intends to file a Schedule 13D on Monday, August 7, 2017. We also discussed the need for transformational change at the company and expressed a willingness to work with existing management or, alternatively, an external CEO candidate, to effectuate that change.

Shares in Chipotle, on which Pershing Square spent about $1.17 billion past year, are down more than 17 percent since the stake was disclosed.

ADP, based in Roseland, New Jersey, rejected the proposals by Pershing Square, saying that they're not in the best interest of shareholders. With ADP's market value touching $50 billion, that makes Pershing Square's stake worth about $4 billion - by far his biggest single holding, according to data compiled by Bloomberg.

He has forced changes, cheered by investors, at companies like Canadian Pacific Railway, as well as Air Products and Chemicals Inc. Mr. Ackman told the company that he has an 8% stake in ADP, largely through derivatives.

ADP said that during Rodriguez' six-year tenure, ADP has yielded a total shareholder return (TSR) of 202 per cent, well in excess of the S&P 500 TSR of 128 per cent and many times over Pershing's TSR of 29 per cent.

Billionaire hedge-fund activist investor Bill Ackman has amassed a sizeable minority stake in payrolls processing company ADP.

About Pershing Square Capital Management, L.P.

Shares of ADP are up 2.9% at $115 in premarket trading Friday.

The company said last month that it's anticipating revenue growth of 5 percent to 6 percent in 2018 and adjusted earnings per share to rise 2 percent to 4 percent.

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