Below is Bill Ackman & Pershing Square Capital's presentation on Canadian Pacific (CP), entitled 'The Nominees for Management Change.' As we've detailed, Ackman has gone activist on CP and is seeking to shake-up management.
In the presentation, the hedge fund highlights their past success with General Growth Properties (GGP), JC Penney (JCP), and more. Currently, CP is Pershing's second largest investment as they own 14.2% of the company.
With their proxy contest, they highlight how CEO Fred Green has underachieved and how Hunter Harrison would have been a better selection.
They also highlight the economic rationale for such a change: "Canadian Pacific is 70% the size of Canadian National, yet has an enterprise value 40% as large, due to its inferior profitability and asset utilization."
Embedded below is Ackman & Pershing's presentation on CP (email readers click to view):
For other investment theses from this hedge fund, you can view Pershing's presentation on Fortune Brands Home Security as well.
Thursday, February 9, 2012
Bill Ackman & Pershing Square's Presentation on Canadian Pacific (CP)
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