Canadian Pacific to raise share buyback ceiling

Canadian Pacific Railway Ltd. is more than doubling the ceiling on its share repurchase program, to about 12.7 million common shares, from 5.3 million.

The railway said late on Monday that it has already bought back the maximum number of shares allowed under the current plan, which kicked in on March 17, purchasing about 3 per cent of its outstanding common shares.

The amended plan, which has been approved by the Toronto Stock Exchange, goes into effect Oct. 2, and the railway said it plans to set up an automatic share purchase plan.

CP's shares have soared since now-CEO Hunter Harrison and activist hedge fund Pershing Square Capital Management won a 2012 proxy battle to take control of the company and kicked off a successful campaign to make the railway more efficient.

Shares are up more than 40 per cent this year to date, and closed at $228.58 on the Toronto Stock Exchange on Monday.