Shares of Chipotle Mexican Grill (CMG) were advancing late Monday morning after the company signed a confidentiality agreement with billionaire investor Bill Ackman, Reuters reported, citing a source.
Ackman's Pershing Square disclosed a 9.9% stake in the burrito chain in early September. Ackman wants multiple board seats with the goal of bolstering food safety and marketing, sources told Reuters last week.
Chipotle stock was up more than 3% in late-morning trading today.
Last week, two small investment firms Amalgamated Bank and CtW Investment jointly filed a shareholder proposal against Chipotle to replace founder and co-CEO Steve Ells as chairman with an independent director.
"We think it's the right time to clean house. It's past time for Chipotle's board to grow up so that it reflects the size of the company," CtW Investment lead analyst Derrick Wortes told TheStreet last week.