CALGARY — Former cabinet minister Jim Prentice has joined Canadian Pacific Railway’s board of directors.
The Calgary-based railway says the appointment is effective as of Friday.
During his time in government, Prentice was in charge of the Environment, Industry and Indian Affairs and Northern Development portfolios.
He’s currently senior executive vice-president and vice chairman at the Canadian Imperial Bank of Commerce and serves on the boards of Bell Canada and Coril Holdings Ltd.
REUTERS/Lucas JacksonBill Ackman’s Pershing Square has unloaded a sizable stake in Canadian Pacific Railway Limited (NYSE:CP), and losses from its Valeant Pharmaceuticals position are being blamed. The activist investor typically keeps the number of stocks in his firm’s portfolio relatively short as he focuses on building value at the companies he invests in.
Norfolk Southern Corp. is meeting with investors this week to promote its new operating plan as part of an effort to convince them that it’s doing the right thing in shunning a takeover by Canadian Pacific Railway Ltd., according to people familiar with the matter.
While Canadian Pacific Railway Ltd. has a little room to restructure its offer for Norfolk Southern Corp., a proxy fight appears likely at this point, according to Hunter Harrison, the Canadian carrier’s chief executive officer.
The U.S. railroad, which rejected its suitor’s revised proposal on Monday, hasn’t engaged in negotiations, Harrison said.
By David Hunkar: Canadian National Railway (CNI) and Canadian Pacific Railway (CP) are the major railroads in Canada. Activist investor Bill Ackman of hedge fund Pershing Square Capital Management has initiated a corporate battle to take control of the Canadian Pacific railroad and implement management changes.
Norfolk Southern Corp.’s board has officially rejected a revised takeover offer from Canadian Pacific Railway Ltd., saying it’s worth less than the first proposal and doesn’t do anything to address its regulatory concerns.
“The consideration in that proposal has less overall value and cash than your prior proposal, which the board had determined to be grossly inadequate,” says the rejection letter, signed by CEO Jim Squires and lead independent director Steven Leer.
CALGARY — Pershing Square Capital Management has announced a public offering of more than 5.9 million shares of Canadian Pacific Railway Ltd. that would have a value of more than $880-million at market prices.
The deal makes good on a pledge by activist investor Bill Ackman back in June to divest seven million CP shares within a year, taking advantage of a big run-up in the railway’s stock.
Ackman led a bruising proxy fight against the railway’s previous management aimed at wringing greater value out of CP stock.
By Sammy Pollack:Since Bill Ackman started buying shares in September 2011, shares of Canadian Pacific Railway (CP) have outperformed other large railroad companies by a wide margin. There are three reasons why CP is not my favorite railroad stock.