Newspaper article The Canadian Press

Activist Investor Signals Sale of Canadian Pacific Shares Worth $1.9 Billion

Newspaper article The Canadian Press

Activist Investor Signals Sale of Canadian Pacific Shares Worth $1.9 Billion

Article excerpt

Hedge fund to selling Canadian Pacific stake

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CALGARY - The American activist investor who forced Canadian Pacific Railway to bring E. Hunter Harrison out of retirement to act as CEO in 2012 is selling stock worth $1.9 billion.

Pershing Square Capital Management L.P., the hedge fund controlled by Bill Ackman, and Calgary-based CP Rail announced jointly after markets closed Wednesday that the fund will sell its entire 9.8-million shares, about 6.4 per cent of the company's equity, through a public offering.

The stake is worth $1.9 billion at the railway's closing price of $192.49 on the Toronto Stock Exchange on Wednesday. When Pershing first confirmed it had bought a 12.2 per cent stake in the railway in October 2011, the stock was trading for about $69.

According to a Canadian Pacific regulatory filing earlier this year, Ackman held 13. …

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