CP Rail (Canadian Pacific Railway) locomotives at rest - Date/Photographer unknown.

22 November 2011

Pershing Square Ups Stake in CP Rail

New York New York USA - Pershing Square Capital Management has invested another US$90 million in Canadian Pacific Railway, raising the fund's stake in Canada's second-biggest railroad to 12.4 percent from 12.2 percent.
 
Pershing, a U.S. fund run by activist investor William Ackman, increased its interest in CP by exercising two over-the-counter, American-style call options covering about 3 million shares, according to a filing with the U.S. Securities and Exchange Commission.
 
Pershing first revealed on 28 Oct 2011 that it had amassed a 12.2 percent stake in CP, making it the railroad's biggest shareholder.
 
Ackman is known in the investment community for taking big stakes in mostly retail companies and working with their management to try to improve the value of the business.
 
Pershing has been silent on what its plans are for CP although Ackman was reported as saying he did not think it should be sold.
 
CP, which operates a 14,000 mile (22,400 km) rail network across Canada and into the United States, has declined to comment on any talks between the two sides.
 
CP's shares were 34 Canadian cents weaker at $59.41 on the Toronto Stock Exchange on Tuesday morning.
 
Thomson.