Ceridian rejects Pershing's claims against it as unfounded

By Lisa Kerner

Charlotte, N.C., Jan. 22 - Cerdian Corp.'s board of directors called Pershing Capital Management LP's recent claims against the company "unfounded and unwarranted" in its reply to the shareholder.

In her letter to Pershing, Ceridian president and chief executive officer Kathryn V. Marinello outlined three points:

• Ceridian's board and management team hired an independent financial adviser to undertake a full review of the company, including a possible spinoff of Comdata.

• Ceridian is not embarking on an "acquisition-driven conglomerate strategy" but is focused on improving operations and strengthening productivity.

• Ceridian is not on the verge on losing Comdata's president, Gary Krow.

Pershing and its affiliates own about 11.3% of Ceridian's outstanding stock. They objected to Ceridian's replacement of its previous chief executive officer and believe the company should spin off its subsidiary, Comdata.

The dissatisfied shareholders intend to nominate a slate of alternate directors to the company's board by Jan. 23, according to a schedule 13D filed with the Securities and Exchange Commission.

Ceridian is a Minneapolis-based information services company.

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