Pershing Square Wins Proxy Fight With Canadian Railroad

May 18 2012 | 4:11am ET

Pershing Square Capital Management has won a resounding victory in its high-profile proxy battle with Canadian Pacific Railways.

The hedge fund's entire slate of seven director nominees were elected to the Calgary, Alberta-based company's board yesterday. And while the vote gives Pershing Square just under half of the board's seats, it's expected that its victory will be seen as a mandate to run the company. Pershing had railed against CP CEO Fred Green, whom it blamed for the company's poor performance.

CP announced that Green would leave the company and its board in the wake of the vote, and that Chairman John Cleghorn and four other directors would not stand for re-election. It also named an interim CEO, while Pershing Square chief and newly-elected director William Ackman pledged a "proper job" in the railroad's search for a new leader, although he has made clear that he wants former Canadian National Railway CEO Hunter Harrison in the job.

"We came in peace and I'm delighted to say we are at peace again," Ackman said at the annual meeting, at a hotel in downtown Calgary. "We heard a loud and clear mandate for change and we are honored to work with the new board to take this great company to higher levels of performance and achievement."

CP did not release the vote totals, but it took only minutes to announce that the Pershing Square slate had won. Pershing Square owns 14% of CP.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.