Ackman says Possessed stake in Hilton, a previously unnamed bet


Ackman says Possessed stake in Hilton, a previously unnamed bet

The company declared Ackman’s investment earlier this month and said he was seeking to fire Chief Executive Officer Carlos Rodriguez and control the firm. The CEO later called the fund manager a “spoiled brat” on tv.

While Ackman will lay out his case for improving performance at ADP on a conference call on Thursday, he said on Wednesday that if management had been quiet he may have worked more collaboratively with the firm.

That includes his latest investment, a $4 billion bet on human resources software firm Automatic Data Processing Inc that Pershing Square previously owned between 2009 to 2011.

“Had they given us a week, I do not think we would be in a proxy contest,” Ackman said only days after proposing three individuals, including himself, as independent board directors.

Released at Wed, 16 Aug 2017 18:17:46 +0000

“Our big disappointment here is we were never able to make it as large a position as we would have liked,” Ackman said, adding that it finished up “about 30 percent versus our average price where we exited.”

Reporting by Svea Herbst-Bayliss; Editing by Chizu Nomiyama and Tom Brown

Ackman and one of his partners told investors on a conference call that they have long admired the hospitality company and made the investment last year as Hilton was trading at a temporarily depressed valuation.
Ackman hit back on Monday in a filing which revealed that Rodriguez had inadvertently sent him an email meant for the ADP legal group in which the CEO dismissed Ackman’s pledge to work collaboratively rather than credible.
Pershing Square Capital Management possessed a approximately 5 percent stake but sold out within the previous two months, Ackman said, noting that the stock price ran up too quickly and prevented him from buying more.

For years any word from Ackman about a new idea could send the provider’s stock racing. But after two years of double-digit losses, Ackman is looking for a win and has attempted to maintain some bets under wraps.