Ackman Gets His Way at Canadian Pacific

Canadian Pacific Railway Ltd. (NYSE: CP) announced this morning the resignation of Fred Green, President and CEO of the company following a 34-year career at the railroad. In its announcement the railroad’s chairman said, “The Board wishes to thank Fred for his dedicated years of service.” That’s it.

Later this morning at CP’s shareholder meeting more changes are sure to take place. In the same press release, the company said that five other directors, in addition to Green, would not stand for re-election. That means that there are now just 16 candidates for 16 available board seats. William Ackman’s slate of candidates will take seven of the available seats, and Pershing Square Capital Management will, for all intents and purposes, be running the railroad.

Last Sunday Ackman said that of the 36% of votes cast at that time, his slate had 97%. CP’s shareholders were behind Ackman’s criticisms of the company, as were three major proxy advisory firms. Ackman had also enlisted the help of the former head of the Canadian National Railway Co. (NYSE: CNI), Hunter Harrison, who is now the likeliest candidate to head CP.

The railroad’s shares are inactive in the pre-market. Shares closed at $74.87 last night, in a 52-week range of $44.74-$79.91.

Paul Ausick