Ceridan (CEN) was downgraded to Neutral rating from Buy at UBS. Price target drops to $36 from $41, and FY 2008 eps estimates hold at $1.62.

From Barron's 6-18-07:

William Ackman's Pershing Square Capital Management, Ceridian's largest shareholder, said it had hired Lazard Freres to seek alternatives to Ceridian's agreement to be sold for $5.3 billion, or $36 a share, to Thomas H. Lee Partners and Fidelity National Financial (ticker: FNF). Ackman said that the best course would be "... a sale of the entire company at a higher price; a sale or separation of one or both of the company's main operating units; and/or a recapitalization, dividend or self-tender transaction where significant value can be returned to stockholders, whether in combination with a broader transaction or otherwise."

Pershing Square holds 21,432,734 shares (14.9% of the total outstanding).

Ceridien (CEN-NYSE) can avoid its problems if they go private.

Ceridian (CEN)
Pershing Square Capital Management's stake rose to 20.53 million shares (14.5%). On Feb. 27, Pershing exercised call options to buy 3 million shares at an exercise price of $24.26 each and calls to buy 1 million at $24.44. On Feb. 28, it purchased 808,400 more shares for $32.59 each.

Ceridian (CEN)
Activist investor William Ackman's Pershing Square Capital Management said it has notified Ceridian of its intention to nominate directors at Ceridian's 2007 annual meeting. Pershing Square said it plans to nominate Ackman, Michael Ashner, John Barfitt, Harald Einsmann, Robert Levenson, Michael Porter, Gregory Pratt and Alan Schwartz for election to the board of the Minneapolis information-services company. Pershing Square currently holds 15,724,334 shares (11.3% of the total outstanding).

Work for the company.

Outsourcing stock. Trades at a premium to the S&P 500. For those who consider it a "value play", where's the value?