Tuesday, 26 July 2016
Last updated 3 hours ago
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.