THE U.S. hedge fund trying to unseat the current leaders of Canadian Pacific Railway Ltd. (TSX:CP) took another step forward Thursday by officially inviting CPR shareholders to vote for an alternative slate of directors.
In a letter to investors released Thursday along with a proxy circular filed with regulators, Pershing Square chief executive officer Bill Ackman outlined his view of the CPR, which he called the worst-performing top-tier railway in North America.
Ackman blamed the company's board and its current chief executive, Fred Green, who he said have poorly managed the company's operations.
"It's time for a change," Ackman wrote, a message the hedge fund manager has been delivering for months with increasing intensity.
"With a revitalized board and a new CEO, we are convinced CP will return to its position as a leader among (the top six) North American railroads."
Pershing Square holds a 14.2 per cent interest in Canadian Pacific, making it the railway's biggest single shareholder, but not big enough to impose its will without support from other investors.
It has nominated a slate of seven prospective directors, including Ackman, for election to CP's 15-member board at the company's annual meeting in May.
-- The Associated Press