Ceridian: Ackman’s Claims ‘Disingenuous’

Sep 6 2007 | 1:50pm ET

Ceridian Corp. has a few choice words of its own for activist hedge fund honcho William Ackman. The human-resources outsourcing concern fired back today at Pershing Square Capital Management’s “continuing ill-advised effort” to replace its board.

The company said Ackman’s plans to replace the current board “introduces significant and unnecessary risk to completion of our $36 per share cash merger,” citing other institutional investors, including private equity powerhouse Thomas H. Lee Partners, support for its current management team.

Ceridian labeled Pershing Square’s claims of continuing its proxy fight only so that its nominees can act as a “backstop” and take over the company in case the merger does not close as “disingenuous.”

“It is Pershing Square’s proxy fight that increases the very risk that Pershing Square claims to be trying to backstop,” Ceridian wrote on its Web site. “If Pershing Square truly wanted to support our $36 per share cash merger, it would support the reelection of our board and allow the merger to close, knowing that if the merger did not close, it could immediately renew its election contest.”


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...