Canadian Railroad Nominates Activist Ackman For Board

Mar 23 2012 | 12:53pm ET

Canadian Pacific Railway has nominated activist investor and hedge fund manager William Ackman for election to its board of directors.

The move is the latest development in the proxy battle between the Canadian railway company and Ackman’s Pershing Square Capital Management. Ackman wants to replace CP’s chief executive, Fred Green, with former Canadian National Railway CEO Hunter Harrison.

According to Reuters, CP strongly disagrees with Ackman’s plan to replace Green, but said it remained open to having Ackman join its board.  The company had offered the hedgie a seat on the board in 2011, but Ackman turned it down and instead nominated himself and a five-member slate for election.

CP, on Thursday, said it was ready to offer Ackman a seat on the board but questioned the rail industry bona fides of his other nominees.

CP holds its annual shareholder meeting on May 17 in Calgary, Alberta. The railway’s chairman, John Cleghorn, told investors in an open letter on Thursday the meeting is “one of the most important in Canadian Pacific’s history.”

Pershing Square owns 14.2% of CP. The hedge fund manager blames Green for the railroad’s less-than-stellar performance.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...