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Harrison would take CP job under “circumstances”

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The war of words between Canadian Pacific Rail's (CP-T) Board of Directors and the company's largest shareholder, William Ackman of Pershing Capital Management, took another turn on Wednesday. A source close to the matter tells BNN's Howard Green that Hunter Harrison, the former CEO of CN Rail, who Ackman is reported to be pursuing to take the top job at CP Rail, would take the job under the "right circumstances."

The source also says the dispute between the two parties will be resolved in the next 7 to 10 days.

"And in the long-run Pershing Square will prevail," the source tells Green.

As for CP's notoriously low operating ratio -- a gauge of a railway's efficiency -- the source tells BNN that "Mr. Harrison…believes he can get CP's operating ratio down to the mid-60s, it's now in the low 80s." A lower operating ratio is a sign of greater efficiency in the industry.

The source also says Harrison "doesn't buy" excuses by CP Rail that weather conditions and geography in the West have hampered the company.

Pershing Square Capital owns 14.2 percent of CP Rail and is the company's largest shareholder.

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