Automatic Data Processing (NASDAQ: ADP) is having a pretty strong time in the pre-market this morning, and for good reason. News broke that an activist investor is looking to take control of the company. Of course, this led to excitement among investors, which sent the stock up and prompted our partners at Trade Ideas to alert us to the move. Currently (8:10), ADP is trading at $115.00 per share after a gain of $3.23 per share or 2.89% thus far today.
ADP Climbs On Ackman News
As mentioned above, Automatic Data Processing is having a relatively strong start to the trading session this morning as the result of news surrounding Bill Ackman. According to various reports, Ackman’s Pershing Square Capital Management is looking to take control of ADP.
Currently, Pershing Square Capital Management owns 8% of the company’s shares. Now Pershing Square Capital Management is seeking a 45 day extension in a plan to take five seats on the company’s board. Ackman is also pushing for a change to the CEO. In a statement, ADP had the following to offer…
“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.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ADP. In particular, we’re going to be watching to see what comes of Ackman’s request for an extension and whether or not Pershing Square will be able to push the company into the right direction. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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