Activist investor Bill Ackman has revealed a new $1.2 billion U.S. stake in Canadian Pacific Railway (CP).
Ackman’s new stake in CP Rail comes a decade after he replaced the railroad’s board of directors and installed Hunter Harrison as chief executive officer (CEO) following a high-profile proxy battle at the company.
Ackman disclosed in a regulatory filing that his Pershing Square Capital Management hedge fund owns 14.8 million shares of CP Rail, worth $1.2 billion U.S.
The vocal investor indicated that his second investment in the railway is likely to be less combative, commending the company’s current CEO, Keith Creel, who he helped recruit from rival Canadian National Railway (CNR).
“One of our greatest investment regrets was selling CP a number of years ago. Keith and the team have done a superb job since,” Ackman said in a written statement.
The investment marks a return for Ackman, who served on CP Rail’s board of directors from 2012 to 2016. The investment was one of Pershing Square’s most successful, returning about $2.6 billion U.S. in profit to the firm.
Shares in CP Rail rose about 1% to $99.83 on news of Ackman’s stake, giving the railway operator a market value of roughly $95 billion.
