Ceridian Corporation (NYSE:CEN) urged shareholders on Thursday to vote in favor of a $36 per share takeover offer from buyout firm Thomas Lee and Fidelity National Financial. Meanwhile, Pershing Square's Bill Ackman is speaking out against the merger saying on Tuesday that it would vote its 15% stake against the merger and propose to firing the board.

The September 12th board meeting promises to be an interesting one with a plethora of proposals on the table and a hostile hedge fund. Pershing Square has been pushing for the company to spin-off its Comdata division in order to unlock significant value in the company. The hedge fund also proposed a recapitalization of the company that would enable it to either offer a cash dividend or buyback its stock.

Interestingly, shareholders recent won a lawsuit against the company that will enable the buyer to back out of the transaction if the incumbent board loses the next election on September 12th. And with nearly 15% of the company's shares in Bill Ackman's hands, there is a good chance that the company's merger could be at risk. This is further confirmed by the differential between the share price and the buyout price. In the end, CEN is definitely a stock to keep an eye on while this situation unfolds!

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