Courtesy of Benzinga.
Shares of Canadian Pacific Railway (NYSE: CP) are trading lower on the session by 2.80%, at $62.76. This comes after Bill Ackman, hedge manager at Pershing Square Capital, reported a 12.2% stake in the railway with the Securities and Exchange Commission.
Mr. Ackman has control over 20.6 million shares in the name through long call options. Pershing didn’t indicate whether it has any immediate plans to propose to the railroad operator, though you can be sure he will be speaking with management soon.
Several houses have commented on the filing today. S&P indicated that there was not enough information to be clear what Ackman is trying to do and, thus, they left ratings unchanged. Scotia on the other hand downgraded Canadian Pacific Railway to Sector Perform this morning, noting that any turnaround will occur over the long-term. Over the near-term Scottia’s fundamental 1-year target remains C$64.50.
Canadian Pacific Railway Limited has 14,800-mile network extends from the Port Metro Vancouver on Canada’s Pacific Coast to the Port of Montreal in eastern Canada, and to the United industrial centers of Chicago; Detroit, Michigan; Newark, New Jersey; Philadelphia; New York City and Buffalo, New York; Kansas City, Missouri, and Minneapolis, Minnesota.
