Canadian Railroads > CP Hires Another Shady Character

She should fit well with EHH.

http://business.financialpost.com/news/transportation/cps-new-head-of-corporate-governance-has-weathered-troubling-business-allegations-before

Rebecca MacDonald was one of Bill Ackman's dissident slate of directors.

In a different article, Hunter Harrison revealed that CP is in the "final stages" of recruiting a senior executive from a "competitor".
It will be interesting to see who that is.

http://www.theglobeandmail.com/report-on-business/head-of-cp-rail-shifts-focus-from-work-to-health/article25634671/



Edited 2 time(s). Last edit at 07/25/15 16:59 by Marcus.

The only problem is who could CP merge with that would win approval from the Canadian and US governments?

KCS? Maybe one of the eastern US carriers?

That will come AFTER our upcoming Federal Election.

commissioner Wrote:
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> KCS? Maybe one of the eastern US carriers?

CP...it's not CANADIAN anymore, that's for sure.  WIth the "Spirited" Board meeting and the shady characters, and the screw up that now makes them an American based issuer (for stock) since they lost the Canadian exemption, it makes me think someting bigger is going on...
EHH vacationing in Florida recovering from Pneumonia?  I wonder what railroads are headquartered in Florida?  I sense something...

DrLoco Wrote:
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> CP...it's not CANADIAN anymore, that's for sure.
>  WIth the "Spirited" Board meeting and the shady
> characters, and the screw up that now makes them
> an American based issuer (for stock) since they
> lost the Canadian exemption, it makes me think
> someting bigger is going on...
> EHH vacationing in Florida recovering from
> Pneumonia?  I wonder what railroads are
> headquartered in Florida?  I sense something...

EHH has had a home in Florida for a while. I believe his wife raises horses in the Ocala area.

For what it's worth, CP could be an attractive target for a private equity buyout of the public shareholders. With Pershing and its allies owning a significant block of the company already,, the process is simplified.

But it wouldn't be easy. The legislative process would be a mess.  CP still has unfinished business with the Lac Megantic trust fund, which is a huge open ended liability. The union situation is in shambles. Unlike even a GM situation, the unions correctly believe that CP could be a much more valuable company if the employees were respected and engaged and had a big piece of the potential profit down the road. 

The  elephant in the room is the national treasures legislation. it was used to block the Potash takeover, and could certainly be used to block a hostile takeover of CP, or any change that moves it out of Canada. Even if the government declined to enforce it, one or more involved parties would sue to have the law applied. That could muck things for a while
 

CSX - Jacksonville - In my opinion an ideal acquisition/merger partner. 

In many ways, CSX would be an ideal coming together, as there's no serious competitive overlap to attract cries of monopoly, they interchange both at Chicago and also in New York state, and CSX would give same carrier access to all major U.S. markets east of the Mississippi.

DrLoco Wrote:
-------------------------------------------------------
> EHH vacationing in Florida recovering from
> Pneumonia?  I wonder what railroads are
> headquartered in Florida?  I sense something...