Pershing Square to sell up to 7 million shares of CP stock

Pershing Square Capital Management L.P. yesterday announced plans to sell up to 7 million common shares of Canadian Pacific stock, beginning on or after June 10 and ending in the next six to 12 months.

Sales will be limited to unsolicited brokers' transactions on the New York Stock Exchange and Toronto Stock Exchange in amounts that won't exceed 10 percent of the combined exchange volume for CP's common shares on any day of trading, Pershing Square officials said in a press release.

"Thanks to Hunter Harrison's and the CP team's performance over the last nearly one year, Canadian Pacific's share price has more than tripled since we first invested in CP. As a result, our stake in CP has grown to approximately 26 percent of the combined assets of our funds," said Pershing Square Chief Executive Officer Bill Ackman said. "Given that increased concentration, portfolio management considerations have driven our decision to trim our holdings. Even after these sales, we expect to remain CP's largest shareholder and for CP to remain one of our largest investments."

Ackman and additional Pershing Square representative Paul Hilal will continue to serve on CP's board.