Economy

mahatmakanejeeves

(57,503 posts) Mon Apr 11, 2016, 01:26 PM Apr 2016

Canadian Pacific ends bid to buy Norfolk Southern

In this Dec. 1, 2014, file photo, a Canadian Pacific freight train travels around Morant's Curve near Baker Creek, Alberta. Canadian Pacific said Monday, April 11, 2016, it is ending its nearly $30 billion takeover bid for Norfolk Southern. (Frank Gunn/The Canadian Press via AP, File)

Posted: Monday, April 11, 2016 8:47 am

Associated Press |

OMAHA, Neb. — Canadian Pacific said Monday that it is ending its nearly $30 billion takeover bid for Norfolk Southern, less than six months after it offered to buy the rival railroad.

Norfolk Southern had rejected Canadian Pacific's bids, saying that the Calgary, Canada-based railroad needed to raise its offer and convince a rail regulator that the structure of the deal could be approved.

Canadian Pacific is dropping the deal before the federal Surface Transportation Board could rule on its proposed structure and before Norfolk Southern shareholders vote whether to support merger talks. ... Canadian Pacific CEO E. Hunter Harrison said Monday that there was "no clear path to a friendly merger at this time."

A deal would have expanded Canadian Pacific's rail network across the U.S., and many observers believed it would have triggered a wave of railroad mergers.

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Canadian Pacific ends bid to buy Norfolk Southern (Original Post) mahatmakanejeeves Apr 2016 OP

Anyone who knows anything about Railroads Wellstone ruled Apr 2016 #1

I didn't know that. Thanks for the information. mahatmakanejeeves Apr 2016 #2

With the new P.M. in Canada, Wellstone ruled Apr 2016 #3

Wellstone ruled

(34,661 posts)

1. Anyone who knows anything about Railroads

Reply to mahatmakanejeeves (Original post)

Mon Apr 11, 2016, 02:32 PM

Apr 2016

knows this was just a move by Bill Ackerman to recapitalize Pershing Square his Hedge Fund. Both CP Rail and NS Rail have maintenance issues starring them in the face and this deal would never go anywhere until these issues were addressed. Watch for Ackerman to peddle his Railroad to BNSF,which only makes sense since they already share Trackage and Interchange Short Lines.

mahatmakanejeeves

(57,503 posts)

2. I didn't know that. Thanks for the information.

Reply to Wellstone ruled (Reply #1)

Mon Apr 11, 2016, 03:31 PM

Apr 2016

From another website:

4/11/2016

Canadian Pacific drops efforts to merge with Norfolk Southern

Canadian Pacific announced today that it will end its attempt to merge with Norfolk Southern Corp., and will withdraw a resolution calling for NS shareholders to vote in favor of negotiations between the companies.

CP plans "no further financial offers or overtures to meet with the NS board" at this time, according to a CP press release.

"We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders," said CP Chief Executive Officer E. Hunter Harrison.

Since late last year, CP executives have been pushing for a merger with NS, arguing that the creation of a North American transcontinental railroad would enhance competition, ease freight congestion and improve service to shippers.

Wellstone ruled

(34,661 posts)

3. With the new P.M. in Canada,

Reply to mahatmakanejeeves (Reply #2)

Mon Apr 11, 2016, 04:22 PM

Apr 2016

things are a changing. The New Guy is all about growing Canada and not turning it over to the Private Sector like his predecessor. C.P. has what are called Run Through Agreements with BNSF and UP were they have access to Gulf Ports. C.P. has tons of debt issues and it appears on the surface,this idea was a bailout for Ackerman and his Fund. Remember,Ackerman just lost his ass on Valiant Pharma,as well as Herbal Life.

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