A Canadian Pacific double-stack container train in the Rockies - Date/Photographer unknown.

23 April 2012

Canadian Pacific Comments on Pershing Square Letter to Shareholders

Calgary, Alberta - Canadian Pacific Railway Limited today issued the following statement in response to Pershing Square's letter to shareholders:
 
"When faced with incontrovertible proof of CP's strong operating and financial performance, Pershing Square continues to distort the record to distract shareholders from the fact that it has no plan and no ideas. CP is building on its significant momentum and continuing to achieve record operating metrics, which are resulting in improved financial results and creating enhanced shareholder value. CP is confident that the continued successful execution of the Multi-Year Plan by the CP management team will help drive further financial improvement, further operating ratio improvement, and further shareholder value creation.
 
CP's Board is unanimous in its belief that Pershing Square's demand that it replace the Company's CEO with Hunter Harrison would delay and damage CP's value-generating plan, and represents unwarranted risk to shareholder value at a critical time. Mr. Ackman and Mr. Harrison have publicly conceded that neither Pershing Square nor Mr. Harrison have any plan for reducing CP's operating ratio. Mr. Harrison has admitted if he were installed as President and CEO that it would take him some 18 months to get his team in place, develop a plan, and begin to "move the needle". Despite much rhetoric, Pershing Square still has no plan.
 
The CP Board unanimously recommends that shareholders vote FOR the election of the director nominees proposed by CP on the WHITE universal proxy today."
 
Shareholders are encouraged to visit www.cpOnTrack.com to access the Company's Management Proxy Circular and for more information about CP, the CP management team, and its value-generating Multi-Year Plan.
 
If you have any questions about the information contained in this document or require assistance in completing your WHITE universal proxy, please contact our proxy solicitation agents.