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Ackman, Harrison attack Canadian Pacific board in public meeting
Hmmm… There could be a movie in this. Oh, there is one on this general topic. (Atlas Shrugged)
Curious way to apply for a job, attacking the board of directors. Even if you are Hunter Harrison.
Unbelievable! But I’ve reserved a room in Times Square just in case.
Not cuts, not slash, not burn… weren’t those the 3 primary tools used at CN? Hiring freezes, layoffs, selling the Montreal headquarters, etc.
Oh, yes! I forgot corporate tyranny and intimidation.
Wish I had more history of this CP to make a call of my own. BUT, Bill Ackman must have a value view no one else can see.? NJ
It seems that it is almost to the point where CP brass will soon be at the mercy of the, sometimes, unforgiving investor. CP needs to keep pushing their operating plan for as long as it takes to prove that the current board is the only viable option for CP’s salvation and investor value, because they claim that Pershing Square has none, and that’s all I know for now. But then again, Pershing Square probably does not know enough about CP’s operating environment to publicly announce a plan of their own. Maybe they just don’t want to get caught in their own shoe-strings? Therefore, it makes me wonder if Pershing Square is at all aware of what they are getting themselves into.
But I do know this much, while CN was proactively growing their business and asset holdings in the Midwest in order to go around Chicago-Land to gain quicker access to the all-too lucrative Gulf Ports, CP was kind of the lame duck in trying to keep up with their biggest competitor. I think that is why Harrison has been so attractive to Pershing Square, because he was CEO at that time especially because shareholder value was also growing.
If CP somehow fired back their own salvo by instigating their own growth strategy during that time; say by pushing for a merger with KCS for example, it certainly would have turned some heads and really made it noticed. Costs of acquisition, competitor concessions, and my personal speculation aside, a KCS and CP union would eventually give CN a run for its money, because not only would CP gain direct access to Gulf Ports, but it would give it control over KCS de Mexico. A truly multi-billion dollar deal that would result in multi-billion dollar profits for years to come.
However, for Harrison to suggest that he be hanged if he cannot deliver on operating targets, seems a little too bold to say, even if its him saying that he should be the the one to be hanged. Some people might actually take him at his word - I hope not - if things really do not turn out right. S
way to go H.H. nice way to instill confidence in CP’s investors! NOT!! By the way, it was CN’s employees and their dedication that turned CN around, you just took the credit. As for Mr. Ackman, What background does he profess that makes him an expert in thr railroad industry? none that I see. sounds more like the old ‘squeeky wheel’ syndrome, if I whine enough somebody might listen. Pershing Square is no different than that other so-called fund that tried to upend CSX. bottom line…not interested in making the target better, just raping it and tossing the shell aside. this is one time the governments north and south of the border need to step up and rein these funds in.
This is beginning to smell like the CSX vs The Children’s Investment Fund contest: try to use a hedge fund to take over the railroad, distribute all of the capital that had been reserved for long term improvements to the new stockholders as dividends, slash and burn to make the numbers look good for a year or two, then dump the empty peniless shell - probably on the federal government. We’ve seen this movie.
Hunter Harrison by definition is a slasher and burner. And to stand there and say he would do so not is pure folly.