Canadian Pacific Says Pershing Square Proxy Circular Fails To Present A Credible Case For Change

Canadian Pacific Railway Limited

today issued the following statement in response to Pershing Square's proxy circular. John E. Cleghorn, Chairman of the Board, said: "Pershing Square continues its pattern of making misleading and inaccurate statements about CP and fails to present any plan or even concrete suggestions to achieve its previously stated target of a 65 per cent operating ratio by 2015. Even after over five months, Pershing Square is still unable to articulate any plan that would deliver results comparable to CP's Multi-Year Plan." "The Board believes that Pershing Square's repeated proposal to replace CP's CEO, Fred Green, with Hunter Harrison would delay and damage CP's value-generating plan and would undermine CP's ongoing initiatives to increase volume and improve operations and profitability. A number of CP customers have expressed concerns about the risk and disruption that would occur should Hunter Harrison be installed as CEO of CP. We have received strong customer support for our progress, and we expect further growth as we continue to deliver strong service execution." "The CP Board has extensive experience in railroading and other relevant fields to oversee the implementation of the Multi-Year Plan and is holding management accountable for the results. The Board has reviewed and verified the Company's Multi-Year Plan, which is producing record operating metrics - a leading indicator of financial results. CP's Board and management team are focused on maximizing shareholder value by driving volume growth, expanding network capacity to safely and efficiently support higher volumes and controlling costs."