(The Canadian Press) Canadian Pacific Railway Ltd. (TSX: T.CP, Stock Forum) (NYSE: CP, Stock Forum) says it's seeking potential buyers for a U.S. line that stretches about 1,000 kilometres across several states in the U.S. Midwest.
It's the latest strategic move for the Calgary-based company since a new board of directors installed Hunter Harrison as its chief executive officer in the summer.
On Tuesday Harrison told The Financial Post that he plans to reduce the company's workforce by 23% by 2016, or about 4,500 positions, primarily through attrition.
Harrison is an American-born retired CEO of Canadian National Railway Co. (TSX: T.CNR, Stock Forum) and is credited with turning the Montreal-based company into the most efficient major railway in North America.
Canadian Pacific announced from Minneapolis on Tuesday morning that it's exploring strategic options for a line that runs from Tracy in Minnesota west into South Dakota, Nebraska and Wyoming.
CP assumed operational control of the line when it acquired Dakota, Minnesota & Eastern railroad in 2008.
It's the second move this week that shows the diminished status of the U.S. acquisition, including CP's announcement Monday that it has deferred plans to extend one of its lines into a coal-producing area known as Powder River Basin.
Down 19% on Tuesday to $91.52, CP has a market cap of $15.8 billion, based on 173.2 million shares outstanding. The 52-week range is $94.44 and $62.75.