Pershing Square Approves Ceridian Corporation Sale

Last week, Pershing Square Capital announced its support for the Ceridian Corporation (CEN) - THL Partners/FNF transaction after failing to locate an increased third-party offer, as invited by the CEN Board. However, Pershing has decided to continue its proxy contest aimed at replacing CEN Board members with its own representatives.

Pershing's efforts are perceived as more of a nuisance and publicity stunt which have not surprisingly failed to achieve their objective. The proxy contest is similarly perceived as an unnecessary and ill-fated attempt to create doubt among CEN shareholders as the transaction nears its conclusion.

Granted, the recent credit concerns have created a widespread concern related to transactions such as this one (i.e. private equity acquisitions), but this publication is not in the least convinced that this deal is in jeopardy. On the contrary, the companies are showing every indications that they intend to complete the deal on September 12 at the current $36/share level.

With respect to the GFCO review, the regulatory still has not posted this deal to its pending review list. However, the GFCO has recently had some issues in maintaining its merger database and this may very well explain this deal's absence. It is assumed that the GCFO has probably already cleared this case, or will do so well before the September 12 CEN shareholder meeting. Confirmation from the GFCO is expected shortly.

Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.