BILL’S HAPPY TALK
Ackman ADP reset
Bill Ackman is trying to make nice.
The silver-haired hedgie emailed top brass at Automatic Data Processing on Thursday, scrambling to tamp down acri-mony that has spilled into the public eye since his Pershing Square fund demanded changes to the company’s board earlier this month.
“It appears that there have been misunderstandings over the past few weeks which unfortunately have clouded what should have been a productive relationship from the start,” Ackman wrote to Chief Executive Carlos Rodriguez and Chairman John Jones.
Just two weeks ago, Rodriguez called Ackman a “spoiled brat” in a televised interview and accused the hedgie of threatening him with negative media coverage.
Jones, meanwhile, blasted Ackman’s three nominees to ADP’s board earlier this week, saying they lacked “additive skills or experience” to guide the payroll processor’s board.
Rumors emerged that Ackman built up a stake in ADP in late July, but ADP threw the first public punch on Aug. 4 when it said Ackman sought control of the company and the ouster of Rodriguez.
Pershing Square hit back, disclosing its 8.3 percent stake in ADP later that day and saying that it planned to nominate a minority slate to the board.
Ackman said in a three-and- a-half-hour presentation last week that ADP’s stock — which now trades around $105 a share — could double in four years if the company streamlined operations and got more tech-savvy. He added that a CEO change may be needed.
“I don’t know [Rodriguez] well … up until a week ago, I liked him,” Ackman joked during the presentation.
Rodriguez, for his part, also has reasons to be critical of Ackman.
The two met on Aug. 3 along with other representatives from each company. During that meeting, Ackman-requested — for the second time — that ADP extend its Aug. 10 filing deadline for new nominees.
Rodriguez asked Ackman if he was serious about the request, to which Ackman replied, “I’m dead serious,” according to proxy materials ADP filed Tuesday.
During that same meeting, Ackman threatened to use the media to “damage both Mr. Rodriguez and the company,” ADPsaid.
Later that day Ackman called Rodriguez and admitted that he mayhave “comeon too strong,” ADPsaid.
Ackman, who is hoping to right the ship before meeting with ADP on Sept. 5, added that he looked forward to “engaging in a productive and substantive discussion” in the e-mail filed with the Securities and Exchange Commission.
Reps from ADP declined to comment.