Finance

Canadian Pacific Railway and the Creation of Shareholder Value (B)

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By the end of 2011, it was communicated to Green and the financial markets that the hedge fund Pershing Square Capital Management (PSCM), led by founder and CEO Bill Ackman, had increased its share in CPR from 12’4% to 14´2%. Ackman was an "activist" hedge fund manager , known for having made big changes to the boards of the companies that he had invested in as well as having provided his shareholders with handsome returns. In light of this event, Green held a meeting with the Chairman of CPR´s Board, John Cleghorn to discuss how the situation should be handled.
Bibliographic citation: Simon, Jan; Tatay, Santiago; Richards, William, "Canadian Pacific Railway and the Creation of Shareholder Value (B)", IESE, F-896-E, 12/2013
Date: 13/12/2013
Author(s): Simon, Jan; Tatay, Santiago; Richards, William
Document type: Case
Department: Financial Management
Sector: Rail transport
Languages: English
Year of the events: 2012
Geographic area: Canada

Learning objective Show students real life cases. It can be addressed to students of MBA, EMBA and AMP programs.