The Wall Street Journal: Ackman’s Pershing Square divests its $1.4 billion stake in Canadian Pacific

Bill Ackman’s firm will exit its stake in Canadian Pacific Railway Ltd., where his Pershing Square Capital Management LP prevailed in a 2012 proxy fight.

Pershing Square is selling its 9.8 million shares in a public offering Wednesday. The stake is worth $1.42 billion, based on the recent after-hours price of $144, which marks a 2.2% decline during late trading.

Ackman said in a statement that he plans to stay on CP’s board until its next annual meeting.

Pershing Square plans to use the stock-sale proceeds to fund one or more new investments. “Canadian Pacific has completed an incredible transformation since our initial investment in 2011,” Ackman said.

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