7 May 2012

Pershing Square Statement on Strong Endorsement from Ontario Teachers' Pension Plan

New York New York USA - William A. Ackman of Pershing Square Capital Management, L.P. ("Pershing Square") today issued the following statement regarding the Ontario Teachers' Pension Plan's vote to support all seven Nominees for Management Change and to withhold votes from CP's entire slate of incumbent directors at Canadian Pacific Railway Limited's ("Canadian Pacific") upcoming annual general meeting of shareholders to be held on 17 May 2012:
 
"We are honoured by Ontario Teachers' strong expression of support, they voted for all seven Nominees for Management Change, and voted withhold against all fifteen incumbents. This vote, from one of Canada's most important institutions, sends the strongest possible signal that the past has been unacceptable, and that the future must be different. A loud and clear message from shareholders will enable the reconstituted board to put the past behind it, have a fresh start, and work most efficiently and effectively toward our shared goal."
 
Reporting on the analysis underlying its vote, Ontario Teachers published today:
 
"We have carefully reviewed the arguments of CP and Pershing Square, considering CP's historical performance and future opportunities within the context of the best interests of CP and our Plan members going forward. We note CP's performance has been below its peers during Mr. Green's tenure as CEO and are not convinced that the most recent results provide irrefutable evidence that CP is performing better than its peers. CP has failed to persuade us that Mr. Harrison would be a liability for CP. We believe that CP's multi-year plan (MYP) is similar to those previously executed by Mr. Harrison and that a change in management would not imperil the success of executing the MYP. Therefore, in view of CP's relative historical under performance, the proven success of Mr. Harrison executing similar MYPs and the absence of compelling evidence that his appointment is harmful to CP, we believe there is more risk in maintaining the status quo and support change at CP."
 
Author unknown.