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By Eric Lam and Scott Deveau

Bill Ackman and the leadership of Canadian Pacific Railway are likely headed for a messy proxy battle as the activist investor confirmed Monday he will attempt to throw out the board and install industry veteran Hunter Harrison as the new chief executive, hours after CP’s chairman sent a letter to shareholders endorsing current chief Fred Green.

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“We intend to replace directors of CP with those who are supportive of a change in leadership,” Mr. Ackman, who holds a 14% stake in CP, said Monday. “We intend to install Hunter Harrison as CEO once we are successful.”

Mr. Harrison was chief executive of long-time rival Canadian National Railway until he retired in December 2009.

Mr. Ackman’s comments come as John Cleghorn, chairman of CP, dug in his heels Monday with a letter to shareholders endorsing the company’s current management and direction.In an interview with the Financial Post Monday morning, Mr. Cleghorn repeated his board’s support for Mr. Green and his operating plan.