ADP Says Activist Investor William Ackman Seeks a Shake-Up

ADP Says Activist Investor William Ackman Seeks a Shake-Up

ADP Says Activist Investor William Ackman Seeks a Shake-Up

ADP said Pershing first reached out on Tuesday, and Ackman - who beneficially owns 8% of the payroll processor - asked the company to extend its August 10 board nomination deadline by 30 to 45 days to nominate five directors, including himself, to ADP's board.

ADP, based in Roseland, New Jersey, rejected the proposals by Pershing Square, saying that they're not in the best interest of shareholders. It also wants Carlos Rodriguez, who has been ADP's CEO for almost six years, out.

SV&C's George Sard, Liz Zale and Jared Levy represent ADP.

Pershing Square declined to comment for now. Ackman didn't provide names of his other potential nominees, other than his own, the sources said.

Ackman met with ADP's leadership this week and said he had a new CEO in mind, people familiar with the matter said.

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Pershing Square has long admired ADP's business.

In pre-market activity, shares were trading at $114.99, up 2.88 percent. The investor is also planning to push for margin improvements, but didn't mention plans for a major financial overhaul, they said. The stock is up about 8.2 percent this year, valuing the company at $49.8 billion.

In its statement, ADP compared it six-year stock performance under CEO Rodriguez to Pershing Square's hedge fund returns from 2012 to 2016. ADP manages services including payroll, human resources and taxation for corporate clients.

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. At that meeting, we reiterated our request for an extension to the nominating deadline and discussed the potential additions of several independent directors and a Pershing Square representative to the Board. He amassed a passive investment in company from 2009 to 2011, Bloomberg data shows.

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