Ackman met with Rodriguez on Thursday and asked to postpone the nomination deadline but was told no, two sources told CNBC. Ackman didn’t provide names of his other potential nominees, other than his own, the sources said.
Pershing Square declined to comment for now.
In its own statement on Friday morning, ADP said, “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.” Morgan Stanley is its financial advisor and Paul, Weiss, Rifkind, Wharton & Garriso is its legal advisor.
In its statement, ADP compared it six-year stock performance under CEO Rodriguez to Pershing Square’s hedge fund returns from 2012 to 2016.
“Since Carlos Rodriguez became CEO nearly six years ago, ADP’s total shareholder return of 202% is well in excess of the S&P 500 TSR of 128% – and is many multiples of Pershing’s TSR of 29%.”
Word that Ackman was building a stake in the company sent the shares up more than 10 percent late last month. Pershing previously owned ADP shares from 2009 to 2011.