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

See all articles by Yvan Allaire

Yvan Allaire

Institute for Governance of Private and Public Organizations (IGOPP)

Francois Dauphin

Institute for Governance of Private and Public Organizations (IGOPP)

Date Written: November 28, 2016

Abstract

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

Allaire, Yvan and Dauphin, Francois, Pershing Square, Ackman and CP Rail: A Case of Successful 'Activism'? (November 28, 2016). Institute for Governance of Private and Public Organizations, 2016. Available at SSRN: https://ssrn.com/abstract=2879033 or http://dx.doi.org/10.2139/ssrn.2879033

Yvan Allaire (Contact Author)

Institute for Governance of Private and Public Organizations (IGOPP) ( email )

1000 de la Gauchetiere West
Suite 1410
Montreal, Quebec H3B 4W5
Canada
514 439-9301 (Phone)
514 439-9305 (Fax)

Francois Dauphin

Institute for Governance of Private and Public Organizations (IGOPP) ( email )

1000, de la Gauchetiere St. West, Suite 1410
Montreal, Quebec H3B 4W5
Canada
514-439-9301 (Phone)

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