Embattled activist investor Bill Ackman is seeking to take over the board of Automatic Data Processing (ADP) and replace the human resource firm's CEO, Carlos Rodriguez, the company said Friday.
Pershing Square took a 9.9% stake in Chipotle past year.
Ackman had previously invested in ADP from 2009 to 2011.
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"Since Carlos Rodriguez became CEO almost six years ago, ADP's total shareholder return of 202 percent is well in excess of the S&P 500 TSR of 128 percent - and is many multiples of Pershing's TSR of 29 percent", the company said. Everyone's done it: "While I am always praising of you as a person and an intellect if I agree to say something it will be supportive of the company and critical of you".
"Rodriguez has very broad-based investor support and has factually delivered very compelling returns for shareholders so Pershing Square faces an uphill battle in this case", said Bernstein Research analyst Lisa Ellis.
There have been successes too: Last year, Pershing Square exited a long-time investment in Canadian Pacific Railway Ltd. that made about $2.6 billion, and in July it sold part of its stake in fast-food chain holding company Restaurant Brands International Inc. after shares in the owner of Burger King and Tim Hortons rose 39 percent over the previous year.
According to reports, Ackman's Pershing Square Capital had already built up an 8% stake in his target via derivatives. ADP shares returned about 164%, including dividends, between the time he took over and when Mr. Ackman's stake surfaced, besting the 120% return of the S&P 500 over the same period. Pershing Square now has around $10-billion in assets under management.