Ceridian Fires Alleged Pershing Square Informant

May 14 2007 | 2:22pm ET

The battle between Ceridian Corp. and hedge fund Pershing Square Capital Management has cost one Ceridian executive his job.

The business services company has fired Gary Krow, who served as president of Comdata, it’s payment processing unit, accusing him of meeting with and passing information on to Pershing Square, Ceridian’s largest shareholder. The hedge fund has waged a campaign to spin off Comdata and replace its board.

Ironically, Reuters reports it was the very legal proceedings initiated by Pershing Square that tipped them off to Krow’s alleged illicit encounters with the hedge fund. But both Krow and Pershing Square deny any wrongdoing.

“Contrary to the statements made by Ceridian today, I have not violated the company’s code of conduct or held unauthorized discussions with or provided confidential information to Pershing Square Capital or other third parties,” Krow said in a statement e-mailed to Reuters. “I am confident our shareholders and the courts will agree.”

Pershing said it met with Krow in January, but said in a statement “at no time during the meeting did Mr. Krow or his representatives disclose confidential company information to Pershing or its representatives concerning Ceridian, Comdata or any of their affiliates.”


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.