Pershing Square, Ackman and CP Rail: A Case of Successful 'Activism'?
Institute for Governance of Private and Public Organizations, 2016
31 Pages Posted: 5 Dec 2016
Date Written: November 28, 2016
Pershing Square, an activist hedge fund owned and managed by William Ackman, began hostile maneuvers against the board of CP Rail in September 2011 and ended its association with CP in August 2016, having netted a profit of $2.6 billion for his fund. This Canadian saga, in many ways, an archetype of what hedge fund activism is all about, illustrates the dynamics of these campaigns and the reasons why this particular intervention turned out to be a spectacular success… thus far.
This paper presents an in-depth analysis of this unique case and explores the factors explaining the success of the activist intervention. Some lessons for corporate governance are also outlined as conclusion.
Keywords: activist hedge fund, corporate governance,activist intervention
Suggested Citation: Suggested Citation