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Bill Ackman to sell $835-million of CP shares

Bill Ackman, CEO of hedge fund Pershing Square, arrives for the annual meeting Canadian Pacific Railway in Calgary, Thursday, May 17, 2012. Influential U.S. corporate lawyer Martin Lipton says shareholders are becoming too powerful a force in the corporate world, especially some of the most prominent hedge fund activist investors like Ackman and Carl Icahn.

Jeff McIntosh/The Canadian Press

Activist investor Bill Ackman's Pershing Square Capital Management is selling $835-million of Canadian Pacific Railway Ltd. stock after a huge run in the stock.

Mr. Ackman's firm hired three banks to lead the sale of 5.97-million shares of CP at a price of just under $140 a share. It's a very tight discount to the closing price of $141.72.

Credit Suisse, Bank of America Merrill Lynch and Morgan Stanley are leading the deal.

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Mr. Ackman's firm has steadily been trimming its CP stock as the shares have tripled roughly from when Mr. Ackman got involved at CP.

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