Canadian Pacific is a North American based railway company that lately come under attack from an activist investor, Pershing Square Capital Management (Pershing). Pershing had recently declared its prospective plans to replace the CP board of directors and its chief executive officer and had also accumulated a 14 per cent shareholding in CP.
The case takes a bird-eye view of the CP, its current performance in comparison with Canadian National, as well as the basis for Pershing's claims that this was attributable to poor governance and management and that CP had lagged its competition in terms of performance. The board of CP must choose whether to make concessions to Pershing or risk an all-out proxy battle which it may lose.
Shareholder Activism at Canadian Pacific case study solution
PUBLICATION DATE: April 23, 2014 PRODUCT #: W14108-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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