Ceridian, Pershing Square reach 'win-win' agreement

By Lisa Kerner

Charlotte, N.C., Sept. 10 - Ceridian Corp. and Pershing Square Capital Management, LP reached an agreement regarding the election of directors at Ceridian's annual meeting, the companies jointly announced on Monday.

Pershing Square agreed to end its proxy contest, and Ceridian agreed to increase the size of its board to 11 immediately after the meeting. In addition, three of Pershing Square's current nominees - John D. Barfitt, Robert J. Levenson and Gregory A. Pratt - as well as Paul C. Hilal of Pershing Square, will be appointed to the board.

"This agreement represents a win for all Ceridian stockholders and allows us to move forward decisively in closing our $36 [per share] cash merger with Thomas H. Lee Partners and Fidelity National Financial," Ceridian president and chief executive officer Kathryn V. Marinello said in a company news release.

Pershing Square's William A. Ackman said his company is "delighted to have brought this situation to an amicable conclusion" and looks forward to a prompt closing of the merger.

It was previously reported that Ceridian said it would hold an election if its merger with Thomas H. Lee Partners, LP and Fidelity National Financial, Inc. did not close. As a result, Pershing Square downsized its board nominee list to a minority slate that included Ackman, Barfitt and Levenson.

Ceridian stockholders are set to vote on the merger deal, valued at $5.3 billion, at the Minneapolis information services company's annual meeting on Wednesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.