Air Products & Chemicals, Inc. (NYSE: APD) is on watch Wednesday morning following news that Bill Ackman, of Pershing Square, has taken a 9.8 percent stake in the company. Headlines come from CNBC late Tuesday.

Total value of the stake is about $2.2 billion and a 13D on the move is expected out later today.

On the investment, Ackman said, it's a great business that is undervalued...We have some ideas on how to add value. He noted that Air Products has a diverse customer base, strong pricing power, and high barriers to entry.

Last week, Air Products put in place a 'poison pill' plan, which prevented investors from taking a stake of more than 10 percent in the company and allowed existing investors to buy more shares at a discount. Ackman said he would have acquired more shares without the plan in place.

Air Products is flat in early trading.

NOTE: Rumors of the Ackman stake surfaced last week amid the poison pill disclosure.

13Ds Hedge Funds Hot Corp. News Trader Talk

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