Bill Ackman Pushing for Board Seats to Control ADP

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

In its own statement on Friday morning, ADP said, "The Board has unanimously determined that it is not in the best interests of ADP or its other shareholders to accede to Pershing Square's last-minute request for an extension".

Based on extensive research and due diligence, Pershing Square believes that there is an enormous opportunity to improve the operating performance of ADP by accelerating growth, improving the quality of ADP's software and service offerings, dramatically reducing operating costs, and increasing efficiency. Pershing Square intends to file a Schedule 13D on Monday, August 7, 2017.

Ackman's pursuit of ADP, which has a market value of about $50-billion, comes as the 51-year-old hedge fund veteran is seeking to score a big win following disappointing investments in debt-laden drugmaker Valeant Pharmaceuticals International Inc and norovirus-stricken restaurant chain Chipotle Mexican Grill Inc. It also wants Carlos Rodriguez, who has been ADP's CEO for almost six years, out.

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.

Pershing Square is said to have acquired an 8 percent stake in ADP through derivatives, which are not subject to the same disclosure requirements as stock.

ADP shares in 2017 weren't lighting the world on fire - they were basically flat until July 26 when a media report said Ackman was buying up a stake in the company.

The payroll company said it declined to extend the deadline. Pershing Square's return over the same period is 29 percent, the statement claimed.

Bill Ackman's re-kindled lust for paycheck processor ADP is now out in the open.

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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