The activist investor said he would propose no more than two new directors to represent Pershing and an additional two to three directors who will be independent of the hedge fund and the railway, the newspaper said.
"We are confident we can work with the remaining directors once we have the shareholders' proxy. We will also benefit from the continuity and knowledge transfer from the legacy directors," Ackman told the newspaper.
Ackman, who has built up a 14.2 percent stake in CP and is looking at ways to turn around Canada's second-biggest railway, said he wants directors to campaign for shareholder support to oust Chief Executive Fred Green.
The battle between the New York activist and hedge fund manager heated up this week when CP's chairman publicly threw the company's full weight behind Green and his plan to improve its operating performance.
Ackman has tapped Hunter Harrison, a former Canadian National Railway chief executive as his pick to replace Green, saying Harrison is "excited" about the possibility of running the railway.
"We don't intend to replace a majority of directors, but we want shareholders to give our nominees a mandate to replace Fred Green," Ackman told the newspaper.
CP officials have declined to comment on Mr. Ackman's announcement Monday that he plans to launch a proxy contest at the railway.
But the newspaper said legal experts have suggested the company will likely put the alternate slate to a shareholder vote at its annual meeting this spring.
By moving to replace a minority of directors at CP, Ackman appears to be seeking to avoid triggering a change of control provision at the railway, according to the Globe and Mail.
Sources said a change of control at CP could force the company to repurchase some of its debts or pay additional compensation to executives such as Green who are eligible for multimillion-dollar settlements if they lose their jobs in the wake of a control change, the newspaper said. (Reuters)
