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[CNJRoss]

Investopedia, 8/4:
 

Pershing Square Sells Its Canadian Pacific Stake

 

Pershing Square Holdings, led by noted activist investor Bill Ackman, has actively exited its big north-of-the-border position: The company announced it completed a public offering of its full stake of nearly 10 million shares of railway operator Canadian Pacific (NYSE: CP). Collectively, the position is worth around $1.4 billion.

 

Pershing Square said it will use the proceeds of the sale to fund a new investment or two. It did not provide more details. Ackman will, however, continue to occupy his seat on Canadian Pacific's board of directors until the company's next annual meeting.

 

Ackman is known for being critical of the companies Pershing Square enters. But as it exited Canadian Pacific, his words were complimentary. He opined that current management has "restored to greatness one of North America's top railroads and set the company on the path to continued success."

 

That upbeat view might be related to the fact that Pershing Square was directly responsible for installing its current leadership.  .  .  .

 

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Related topic:  Activist Investor Wrestles Control of CP From Management

[CNJRoss]

The Street, 8/4:
 

Ackman Exits Canadian Pacific Railway

 

Canadian Pacific Railway (CP) shares were lower Thursday following news that billionaire investor William Ackman exited his position in the company. Ackman's hedge fund Pershing Square sold its entire 9.84 million share stake in Canadian Pacific, which was valued at about $1.5 billion.  .  .  .

 

Continue here w/video report.

[CNJRoss]

The Street, 8/4:
 

Reeling From Valeant Investment, Ackman Liquidates CP Stake

Pershing Square launched a public offering for the remaining 9.8 million shares it held in the railroad, bringing to a conclusion a five-plus-year

campaign that had its ups and downs.

 

Bill Ackman and his beleaguered Pershing Square Capital Management moved to sell the remaining 6.6% stake it owned in Canadian Pacific Railway  (CP) , bringing to a conclusion a five-plus year campaign at the railroad company that had its ups and downs.

 

SNIP

 

Pershing Square and CP issued separate statements addressing the sale. Pershing reported that it had launched a public offering for the remaining 9.8 million CP shares held by the fund. J.P. Morgan Chase & Co.  (JPM) , Credit Suisse  (CS) , and Bank of America Merrill Lynch  (BAC) acted as underwriters for the offering.

 

The activist in April reported that it had cut its stake in CP to 6.6% from 9.1%.  .  .  .

 

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[CNJRoss]

CP news release:

 

Canadian Pacific Railway Limited announces sale of its common shares by Pershing Square

August 3, 2016 Calgary, AB

​

 

​Canadian Pacific Railway Limited ("Canadian Pacific" or "CP") (TSX:CP)(NYSE:CP) and Pershing Square Capital Management L.P. ("Pershing Square") today announced the commencement of a public offering of 9,840,890 of Canadian Pacific's common shares by certain funds managed by Pershing Square. Canadian Pacific is not selling any common shares in the offering and will not receive any of the proceeds from the offering of common shares by the funds managed by Pershing Square. Upon the closing of today's sale of 9,840,890 common shares, funds managed by Pershing Square will not own any common shares of Canadian Pacific.

 

J.P. Morgan, Credit Suisse, BofA Merrill Lynch will act as underwriters for the offering.

 

This offering is only made by prospectus. Canadian Pacific previously filed with the securities commission in each of the provinces and territories of Canada a shelf prospectus and a corresponding registration statement with the United States Securities and Exchange Commission (the "SEC"), which has become effective under the Securities Act of 1933, as amended. Prospectus supplements describing the offering will be filed with the SEC and the Canadian securities commissions on or before August 5, 2016. The prospectuses contain, and the related supplements will contain, important detailed information about the securities being o​ffered. Before investing, you should read the prospectuses and other documents filed with the SEC and the Canadian securities commissions for information about Canadian Pacific and this offering. Copies of the prospectuses and related prospectus supplements, when available, may be obtained from: J.P. Morgan, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 866-803-9204; or Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010, telephone: 800-221-1037, email: newyork.prospectus@credit-suisse.com, or BofA Merrill Lynch, Attention: Prospectus Department, 222 Broadway, New York, NY 10038, email: dg.prospectus_requests@baml.com. You may also obtain these documents free of charge by visiting the SEC's website at www.sec.gov or SEDAR at www.sedar.com​.

 

This press release does not provide full disclosure of all material facts relating to the securities offered. Investors should read the prospectuses, any amendments and any applicable shelf prospectus supplements for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

 

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. Any sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution.

[CNJRoss]

Financial Times, 8/5:
 

Canadian Pacific Railway Ltd is a win for Bill Ackman, no matter how you keep track

 

When activist investor Bill Ackman first approached Canadian Pacific Railway Ltd.’s management about making major changes to the underperforming railway, including hiring a chief executive who had just retired from its closest rival, they were understandably defensive.

 

In press release on Feb. 6, 2012, responding to a town hall meeting Ackman’s hedge fund had just held for CP shareholders, the company accused Ackman of having no plan, just criticism.

 

“Pershing Square continues to offer no plan or clear timetable to improve CP’s operations, or even any concrete suggestions,” the release said. “Pershing Square made a number of assertions and characterizations supported by hypothetical mathematical examples of the effects of speculated improvements on operating metrics.… Pershing Square has no plan and has provided no specific actions to support its hypothetical math.”

 

As it turns out, Ackman did have a plan. And for the company and its shareholders, the math has worked out pretty well.

 

Continue here.

[CNJRoss]

Yahoo Finance, 8/29:
 

Bill Ackman Comments on Canadian Pacific

 

On August 4, 2016 we sold our remaining 9 8 million shares of Canadian Pacific (CP). This sale marked the end of our five-year investment in CP, which was a noteworthy success. I have agreed to continue on the board up until the next annual meeting or until qualified replacement directors have joined the board.

We initiated our investment in Canadian Pacific in the fall of 2011. Prior to our investment, CP had meaningfully underperformed its closest competitor, Canadian National ("CN"), and the other North American railroads in nearly all key operating measures for more than a decade, a performance deficit best illustrated by CP's operating margin of 19%, or about half of CN's 37% margins at the time. As a result of this underperformance, CP' s shares had languished behind competitors and its potential for many years.

 

After performing due diligence on the Company for several months, we concluded that CP's network and assets had no structural deficiencies relative to competitors, and that with proper leadership and an operational transformation we believed that CP could produce margins approaching industry-best levels, an achievement which would lead to substantial improvements in earnings and cash flow and drive significant long-term shareholder value. These views were in stark contrast to the incumbent management team's and board's assertions that CP was structurally limited,  .  .  .

 

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[CNJRoss]

CP news release:

 

CP appoints new directors to Board; announces resignation of Bill Ackman

September 6, 2016 Calgary, AB

 

 

Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced changes to its Board of Directors, including the appointment of Jill Denham and William R. Fatt, and the resignation of Bill Ackman, effective immediately.

 

"Bill has been instrumental in CP's turnaround and his leadership will be missed at the board level," said Andrew F. Reardon, Chairman of the Board. "His experience, energy, commitment and knowledge served the board well over the last four years and positions CP well for the future. With our focus on the future, we have added two new individuals who will bring a great deal of knowledge and passion to their roles."

Mr. Ackman, who was a member of the Finance and Corporate Governance and Nominating Committees, joined the board in 2012.

 

 "I have enjoyed working with Bill from day one," said E. Hunter Harrison, CP Chief Executive Officer. "He saw an opportunity at CP, worked hard to bring me in to the fold, and delivered for shareholders and the board. Over the last four years we have built a better CP and that model remains in place to continue to deliver not just for shareholders, but for customers and employees. We thank Bill for everything he has done and wish him well in the future."

 

Mr. Ackman led the successful effort to install new board members and new management at CP in 2012 when the company was the worst-performing Class 1 railroad in North America. Since that time, CP has generated more than $14 billion in shareholder value and its share price has outperformed the S&P/TSX Composite by 120 percent through the end of 2015.

 

During Mr. Ackman's tenure on the board, CP transformed from railroading's biggest laggard to one of the industry's very best.

 

"I am proud to have served alongside so many passionate and diligent board members, and to have worked with management and the entire CP team on one of the most successful turnarounds in North American corporate history," Mr. Ackman said. "I am confident that with CP's superb management and strong governance, it will extend its remarkable track record into the future."

 

Ms. Denham joins the CP board after a career spent in senior roles in the financial services industry. She was the Vice Chair Retail Markets at CIBC from 2001 through 2005 and the Managing Director Head of Commercial Banking and E-Commerce at the bank from 1999 to 2001. Prior to that, Ms. Denham served CIBC overseas in London, UK as the Managing Director Head from 1995. She entered the financial services industry in 1983.

 

Ms. Denham currently serves as Chair of the Board at Morneau Sheppell and at Munich Reinsurance Canada. She is also a board member at National Bank of Canada and Kinaxis Inc.

 

Mr. Fatt joins the CP board after serving as the Chairman and CEO of FRHI Hotels & Resorts from 1998 through July 2016. Prior to becoming CEO at FRHI, which was created from the merger of Fairmont Hotels & Resorts and Raffles Hotels & Resorts in 2006, Mr. Fatt was the CFO at Canadian Pacific Ltd. - the parent company of Fairmont's predecessor, Canadian Pacific Hotels as well as CP's operating company, Canadian Pacific Railway Co.

 

Mr. Fatt currently sits on the board of the Jim Pattison Group and the Bank of Nova Scotia. Previously, he had served on the boards of Cadillac Fairview Corp., EnCana Corp., SunLife Financial Inc. and Enbridge Inc.

 

"The diverse experience and expertise these individuals bring to the CP board will have an immediate constructive impact," Mr. Reardon said. "They are committed to building on the successes and hard work of the past five years, which have positioned CP as an industry leader now and in the years to come."  ​