Pershing Square Capital Management LP publicly announced that it has taken an 8% stake in Automatic Data Processing Inc., and said it plans to nominate a minority slate of board members.
William Ackman's Pershing Square said it had reached out to ADP expressing its opinion that the company needed to make changes, and discussed adding several independent directors and a representative of the hedge fund to ADP's board. Pershing Square also said that it had expressed "a willingness to work with existing management." ADP earlier issued a press release saying the activist investor had plans to take "effective control" of the company and replace its CEO.
Pershing Square added that it had met with ADP Chairman John Jones III and CEO Carlos Rodriguez on Aug. 3 at the company's request.
The hedge fund said it asked ADP to extend the deadline to nominate members to the board to help facilitate private discussions, but will now move forward with plans to get a minority slate elected after ADP rejected its request.