NEW YORK (TheStreet) -- Shares of Canadian Pacific Railway (CP) were slumping in after-hours trading Wednesday after Bill Ackman's hedge fund Pershing Square sold its entire 9.84 million share stake in the company.
The shares were valued at about $1.5 billion based on Tuesday's closing price, the New York Times reports. Canadian Pacific stock closed at $147.28 on Wednesday.
The Calgary-based railway operator said it is not selling any common shares in the offering.
The company will also not receive any of the proceeds from the offering of common shares by the funds managed by Pershing Square, according to a statement.
J.P. Morgan, Credit Suisse and Bank of America/Merrill Lynch will act as underwriters for the offering.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CP