From Precy Dumlao, Opalesque Asia Ė One year after succeeding in his high-profile proxy fight with Canadian Pacific Railway to install a new chief executive officer at the railroad firm, activist hedge fund manager Bill Ackman has just announced he would sell 29% of his stake in the firm.
According to The Journal, Ackmanís Pershing Square, the largest outside investor in the Canadian railway company with about 24.2 million shares, or a 14% stake, wants to sell some seven million shares estimated to be valued at $923m. He will sell them from June 10 through the next six to 12 months, said Bloomberg.
The sale will give Ackman a windfall profit as the value of the stocks has more than tripled since he bought them in September 2011. The move also comes as the second largest railroad in Canada is hit with a series of accidents and is in the process of cost cutting.
After completion of the sale, Ackman will hold 10% of Canadian Pacific and will maintain his status as its largest shareholder, based on the current shareholder breakdown.
After investing in the Calgary, Alberta-based railroad company, Ackman was engaged in a bitter and high-profile proxy battle and called for a new chief at Canadian Pacific. In May 201......................
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