Was Ackman Really Needed To Shake Up Canadian Pacific Railway?

By Takeover Analyst:In previous articles, I have expressed my bullish outlook on the rail industry. In this one, I argued, frankly, that "railroad stocks are heading skyward". Satiating my interest in railroads with my background in proxy fights, it is interesting to watch the battle going on at Canadian Pacific (CP).

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.

Concerns are being raised that efforts to improve efficiency at Canadian Pacific Railway Ltd. are contributing to a series of accidents at the railroad in recent months, including two more this week. The country’s second-largest railway is in the midst of a massive restructuring under its new chief executive, Hunter Harrison, aimed at righting the railway’s chronic underperformance.

ByMichael Blair:Canadian Pacific Railway (CP) is certainly topical. The subject of activist investor Bill Ackman's 2012 reorganization and now run by Ackman-backed legendary railroader Hunter Harrison, the stock has gone nowhere but up since Harrison was put in office. (click to enlarge) Source: Yahoo Finance

TORONTO — Highfields Capital, a U.S. hedge fund agitating for drastic change at iconic Canadian coffee-and-doughnut chain Tim Hortons Inc, is set for an uphill battle convincing some long-term institutional investors of the merits of its case. The Boston-based activist investor, which owns a 1.5% stake in Tim Hortons, wants the chain to boost returns aggressively via debt-funded share buybacks, while also scaling back on its U.S. expansion plans.

By Alpha Stratus:Last quarter we noted Bill Ackman’s big new investments in Citigroup and Family Dollar (along with other noted activist, Nelson Peltz).

By Market Blog: By David Berman The Bill Ackman train is leaving the station. Who’s willing to hop on board?

Streetwise Blog submits: For some boards of directors, hearing that an activist investor wants to shake up your team is about one of the worst things imaginable. But Bill Ackman, the high profile activist from New York, says it shouldn’t be viewed that way. When directors hear the news, they should “roll out the red carpet,” he said, and then invite the activist in and hear what he or she has to say.