Bill Ackman, Air Products: Bill Ackman’s hedge fund Pershing Square is the largest individual shareholder of Air Products & Chemicals, Inc. (NYSE:APD), currently owning 9.8% of the company. The activist fund originally announced its APD stake in last quarter’s 13F, and a late-July 13D nearly doubled the size of this position. In their filing with the SEC this afternoon, Pershing Square disclosed its Letter Agreement with Air Products & Chemicals. The letter is attached below.
At current prices, the hedge fund’s 20.6 million share-stake amounts to more than $2.2 billion in market value. The Letter Agreement between Ackman and the Air Products involves several agreements between the parties, including: (1) increasing the size of the Board from 12 to 14 members, (2) that Matthew H. Paull and Seifi Ghasemi fill these extra spots, (3) setting a maximum size on the Board of 15 until the 2014 Annual Meeting, and most importantly (4) the search for a new CEO to replace John E. McGlade who is retiring next year.
Here’s Pershing Square’s letter in full: