Bloomberg News

Ceridian Shareholder Pershing Square Wants Spinoff (Update1)

January 18, 2007

Ceridian Corp., a provider of human resource and payroll services to companies, should spin off its Comdata Corp. unit, shareholder Pershing Square Capital Management LP said in a letter to the board.

Pershing Square, an activist hedge-fund firm run by William Ackman that took an 11.3 percent stake in Ceridian last month, said in the letter that Comdata's growth and cash flow have been diluted by other units that haven't performed as well. Ceridian disclosed Pershing Square's letter in a filing today with the U.S. Securities and Exchange Commission.

Pershing Square, which last month said it would take a passive role in the company, plans to nominate an alternative slate of board directors for election at the company's annual meeting, according to the filing.

Shares of Minneapolis-based Ceridian fell 4 cents to $28.06 yesterday in New York Stock Exchange composite trading. The shares have gained 16 percent in the year to today.

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net.

To contact the editor responsible for this story: Jeff Ward at jward@bloomberg.net.


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