Breaking Finance News

BREAKING- Pershing Square takes 9.8 Percent Stake in Air Products (APD)

UPDATE: Air Products adopted a poison pill clause in response to somebody amassing a large position in the company. Ackman said that he may have said too much previously that tipped off the company.

CNBC is reporting that Bill Ackman’s Pershing Square Capital has taken a 9.8 percent stake in Air Products and Chemicals (NYSE: APD). According to CNBC, this represents Ackman’s largest single bet on a company. He reportedly believes that the high barrior of entry for competitors positions this stock well and that it’s undervalued.

Bill Ackman and Pershing Square have made headlines since taking a highly public stake in Herbalife (NYSE: HLF) which set off a battle between he and billionaire activist investor Carl Icahn.

The stock’s implied volatility, a measure used by options traders, is currently at 31–well above its 26-week average of 18.

We will update this story as more information comes available.

[stock-tools exchange="NYSE" symbol="APD" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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