Ackman Exits Canadian Pacific Board
William Ackman, an activist investor resigned from the board of Canadian Pacific on Tuesday, signifying the end of a four-year tenure that facilitated in revamping the ailing railroad company and acquire his hedge fund roughly $2.6-billion.
Ackman’s resignation, which was announced by Canadian Pacific, occurred almost one month following his Pershing Square Capital Management 9.8 million CP shares being sold, creating about $1.5-billion in cash to achieve other investments.
Initially, he had planned to stay on the CP board until next year, but decided on going now as the company was making other changes by adding Jill Denham and William Fatt.
“I am confident that with CP’s superb management and strong governance, it will extend its remarkable track record into the future,” Ackman said in a statement announcing his departure.
Last year, Ackman played a major role in Canadian Pacific’s efforts to purchase railroad Norfolk Southern, which ended up collapsing.
The resignation represents the end of one of Ackman’s most lucrative and fruitful investments. However, it also coincides with his double-digit losses in his varied investment portfolio.
Leaving the CP board will give Ackman the time to focus on work as a board member at Valeant Pharmaceuticals and Howard Hughes, a developer and operator of master planned committees.
In 2012, Pershing Square lodged one of the hedge fund industry’s most unpleasant and closely monitored proxy battles at Canadian Pacific and gained seven seats on the company’s 16-member board.
Previously this year, Paul Hilal, former Pershing Square partner who had been an important architect of the investment, resigned from CP’s board when he exited Ackman’s hedge fund.