April 23, 2012 / 9:03 PM / 5 years ago

UPDATE 1-Canadian Pacific Railway increases quarterly dividend

April 23 (Reuters) - Canadian Pacific Railway Ltd, which is in the final rounds of a tough proxy fight, said it has increased its quarterly dividend by about 17 percent to 35 Canadian cents per share.

The increased dividend will be paid on July 30 to shareholders on record as on June 22.

The company had announced its first-quarter results on Friday.

The results marked the last set of financials before CP’s May 17 annual meeting, where shareholders will pick between the company’s slate of directors and that of activist investor William Ackman’s Pershing Square Capital Management.

Pershing also wants to replace Chief Executive Fred Green with Hunter Harrison, who is credited with pumping up profits at rival Canadian National Railway Co when he was CEO there. Pershing argues that a new leadership is the only way to boost CP’s lackluster operating performance.

Shares of CP closed at C$74.21 on Monday on the Toronto Stock Exchange.

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