NEW YORK (AP) -- Pershing Square Capital Management LP said late Monday that it plans to sell up to 7 million common shares of Canadian Pacific Railway Ltd.
The move comes about a year after the investment firm run by activist investor Bill Ackman became the company's largest shareholder, taking control of its board and ousting its CEO.
Ackman noted that Canadian Pacific's share price has more than tripled since his firm made its initial investment in the company. As a result, Pershing Square's stake in the railroad has grown to about 26 percent of its combined assets and the firm has decided to trim its holdings.
According to FactSet, Pershing Square holds 24.2 million Canadian Pacific shares for an about 14 percent stake in the company. Ackman said that even after the sales, the firm expects to remain Canadian Pacific's largest shareholder.
The sales will begin on or after Monday and will likely be completed over the next six to 12 months. Ackman and fellow Pershing Square's representative Paul Hilal will continue to serve on the company's board.
Canadian Pacific's U.S. shares fell $4.48, or 3.4 percent, to $127.39 in afternoon trading, as the broader markets fell.