Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

CP Rail $CP Chairman John Cleghorn’s Letter to Bill Ackman

The saga between activist hedge fund manager Bill Ackman and Canadian Pacific Railway (CP) continues this week after “Canadian Pacific Ltd. Chairman John Cleghorn said in an open letter to shareholders that the railroad’s board fully backs Chief Executive Fred Green and the entire management team,” reports the Wall Street Journal. “Mr. Ackman’s Pershing Square Capital Management LP hedge fund owns just over 14% of Canadian Pacific and wants to oust CP’s chief executive in favor of Hunter Harrison, former CEO of company rival Canadian National Railway Co.” PERSHING SQUARE

Click here to read a full text version of the letter.

In the letter, Cleighorn said “the board came to the unanimous conclusion that replacing the company’s chief executive officer, and thereby jeopardizing the successful execution of the multi-year plan, is not in the best interests of CP or its shareholders.” Cleghorn also outlined a multiyear plan for the company, which the CP board endorses, designed to fuel volume growth, expand the network and control costs. He said the board is “confident” the company will  reach an operating ratio in the low 70s in the next three years.
Cleighorn criticized Ackman for not prsenting “any detailed, credible plan” and instead “encouraged activist investor Bill Ackman to accept CP’s offer to join its board,” writes the Wall Street Journal. “CP said it first offered Mr. Ackman a seat on its board in early December.”

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.