Friday, March 09, 2007

Pershing Square Capital Sues Ceridian (CEN) To Release Two Letters

Bill Ackman's Pershing Square Capital, a 14.5% holder of Ceridian (NYSE: CEN), filed suit against the company to release two letters sent by senior executives of the company to the board of directors.

Pershing Square believes that the letters include, "discussions of the senior executives' concerns about the management of the Company, including concerns about the board of directors' oversight responsibilities and/or the performance of the prior chief executive officer." Pershing Square said the company has refused to provide the letters, even though they said the letters are directly relevant to the question of whether stockholders should vote for the new board nominees they proposed or those proposed by the incumbent directors.
Pershing Square recently notified the company that they propose to nominate eight persons for election to the Board of Directors at the 2007 annual meeting of stockholders. Pershing Square has the backing of fellow activist investor, Relational Investors LLC.

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