It was only a matter of time before the backsplash from the Lac Megantic disaster was going to splatter on folks beyond MMA boss Fast Eddie Burkhardt.
This story tells you that the throngs of litigation attorneys hovering over the carcass of Fast Eddie have Big Bill Ackman in their sites.
This will go on forever on the basis of the "deep pockets" syndrome. That's where the litigation hounds take off after the prey that has potentially the most wherewithal in terms of providing the juiciest pay-out.
Now that the media have drawn the connections between Big Bill and Fast Eddie, everything even remotely connected to Ackman and Pershing has a big fat target on its back.
Showing posts with label Pershing Square Capital Management. Show all posts
Showing posts with label Pershing Square Capital Management. Show all posts
Wednesday, July 31, 2013
Wednesday, January 4, 2012
Hedge fund hijinx
Bill Ackman isn't what you'd call a patient investor. None of that Warren Buffet-style hold-it-forever nonsense for him. Ackman is a man in a hurry.
Bill's hedge fund Pershing Square Capital has only been a minority shareholder in the Canadian Pacific Railway for a few months and already he's whining to the Wall Street Journal about how his investment is underperforming.
As a minority shareholder of a few months standing he demands changes, big changes, starting at the very top. He wants to see a new CEO at the helm.
That's the first step in "effectuating a cultural transformation", which is hedge fund jargon for kicking the shit out of the workers. CPR's workforce is heavily unionized and enjoys ridiculous benefits like paid overtime and a dental plan. By bringing the company into the 21st century Ackman should be able to cut hundreds of millions in operating costs. That'll bring up the share price enough that Pershing can dump it's shares, walk away with a few hundred million in profits, and carry on with effectuating a cultural transformation on the next victim.
Along the way Bill Ackman builds nothing, invents nothing, discovers nothing, and produces nothing of any value. In return, society rewards him by making him a billionaire.
That's the beauty of capitalism!
Bill's hedge fund Pershing Square Capital has only been a minority shareholder in the Canadian Pacific Railway for a few months and already he's whining to the Wall Street Journal about how his investment is underperforming.
As a minority shareholder of a few months standing he demands changes, big changes, starting at the very top. He wants to see a new CEO at the helm.
That's the first step in "effectuating a cultural transformation", which is hedge fund jargon for kicking the shit out of the workers. CPR's workforce is heavily unionized and enjoys ridiculous benefits like paid overtime and a dental plan. By bringing the company into the 21st century Ackman should be able to cut hundreds of millions in operating costs. That'll bring up the share price enough that Pershing can dump it's shares, walk away with a few hundred million in profits, and carry on with effectuating a cultural transformation on the next victim.
Along the way Bill Ackman builds nothing, invents nothing, discovers nothing, and produces nothing of any value. In return, society rewards him by making him a billionaire.
That's the beauty of capitalism!
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