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Canadian Pacific headed for proxy fight
I not familiar with how a stock owner can make demands like this, how is this possible?
One word describes this development. Predictable.
Bill Ackman’s Pershing Square is a pump-and-dump operation, plain and simple. Mostly they’ve focused on mass retailers (which obviously have so much in common with fixed-asset transportation). They lost their proxy battle at Target Corp. Maybe Calgary needs to talk to Minneapolis about how to beat this corporate raider at his own game.
Brandon, they can do it by voting in a slate of directors of their choosing forming a majority on the board of directors. They vote stock they either own outright or control. A proxy is a document a stockholder signs surrendering his right to vote stock he owns to a “proxy” voter (Pershing Square). TCI tried this with CSX and lost. Robert Young tried this with NYC and won. It’s been relatively uncommon in the railroad business because there wasn’t big money to be made on railroads until the last couple decades.
of Guelph Canada. My voting shares wil go with the status quo. This is MY railway,and I want it to stay this way.
Not a very smart action at this time.The operation of C.P.Rail require an experienced Board of Directors during these times of recession. The ‘Proxy’ fight looks like a few Directors are trying to get one of their 'Private Club’members into the inner circle via the back door.
Now that railroads have become profitable and a good stock to own (and hold) a corporate raider wants to come in and loot the till. It very well could mean more lost jobs, spin-off of lines forming the CP network and other tricks the raiders like to use to line their own pockets. Ugh!!!