Eastern Railroad Discussion > CP proposes to merge with NS on friday

http://www.wsj.com/articles/canadian-pacific-proposes-merger-with-norfolk-southern-1447460211



Edited 1 time(s). Last edit at 11/13/15 17:35 by 1.

i don't see NS giving up their corp logo or control ... so if it did happen CP corp control is goin to be absorbed and the CP logo is goin bye bye

we'll see, wall street will decide it, and they don't care what color the equipment is as long as it produces some green

Hopefully NS keeps fighting CP off.  

The Canuck Southern?

Lol

Posted from Android

DG .
Unknown, US

The usual procedure in these matters is for CP to offer NS's board some deal for a combination of the two companies. NS can reject it, counter offer, or consider it for a while. If the board decides the offer isn't in the interests of the share holders, and doesn't care to put it to a vote of the share holders, then the real fun starts.

CP can launch what's called a proxy fight. In which it seeks to put its own nominees on the NS board and accept the merger. This is what happened when Pershing Square launched its own attack on the old CP.  CEO Fred Green resisted,  Pershing proposed a slate of new directors, and they won.  Mr Green took his bundle of cash and headed off into retirement

It's not clear at this point whether CP has the votes or the confidence or the funding to carry off this deal.  Bill Ackman is stuck in trench warfare with two other huge cases, and has lost a lot of money there. Whether he could raise enough investment money to buy enough CP stock to make a difference is uncertain.  There's little doubt that he would probably be happy to see BNSF or UP (or both) step in, buy NS, and divide it. Which would make Pershing Square's investment in NS very profitable.


This isn't investment advice, and shouldn't be considered as such.  If you choose to buy securities of any company, you should do your own reseach and make your own decisions

Canadian Southern, eh?

Posted from Android

norfolk pacific

This is depressing, just when we thought the CP was gone from the D&H, ughh. LOL

Posted from Android

By By steam excursions if this happens. But honestly I don't see it happening. But I could be wrong I have been before

Posted from iPhone

The business of making money is yet again the total focus, where now the richest see mergers to be one of best sources of profits. This is a totally subjective, anecdotal point, but everytime I've been near CP lately in Chicago it has been extra slow. A few weeks back there was 1 freight in something like 7 hours on the C&M sub when I was nearby. Today at the east end of Bensenville little was moving over the course of several hours. Of course that is all a matter of timing perhaps, but more telling to me is that 198, the hot intermodal, takes an hour to enter the yard because the conductor has to get getting off to line several switches to enter the yard. On the east end, I've seen this block crossings for 45 minutes, cutting off police and fire from the south side of town with no nearby overpasses. Such a modern railroad, where a hub yard still has hand throw switches!

The TO pundits keep failing to mention that a CP acquisition of NS would have to be approved by the Surface Transportation Board (STB).
ALLEN

If this gets to a bidding war Omaha's two railroad interests will blow the little old CP out of the water.

Bob Wilcox
Charlottesville, VA
My Flickr Shots

inCHI Wrote:
 the
> hot intermodal, takes an hour to enter the yard
> because the conductor has to get getting off to
> line several switches to enter the yard. On the
> east end, I've seen this block crossings for 45
> minutes, cutting off police and fire from the
> south side of town with no nearby overpasses. Such
> a modern railroad, where a hub yard still has hand
> throw switches!

At one time the utility man would line the necessary routes so trains would not have to stop and block towns such as Franklin Park. But the CP eliminated the jobs to save money! I guess the residents of FP will just have to wait a bit longer for police/fire protection.....



Edited 1 time(s). Last edit at 11/14/15 04:51 by CSX_ENG.

krm152 Wrote:
-------------------------------------------------------
> The TO pundits keep failing to mention that a CP
> acquisition of NS would have to be approved by the
> Surface Transportation Board (STB).
> ALLEN

Big mergers are getting a lot of opposition right now, both in the regulatory arena and in the court of public opinion.

Comcast-Time Warner Cable got shot down, even with both companies going "look! we won't be a monopoly! we don't compete head to head anywhere so we aren't reducing competition!"If y
The big pharma and health insurance company mergers are getting attention in the news too.

If you're someone who doesn't want to see this merger happen, start making waves on social media and to people outside the foamer circles about it and how it will affect shipping and ultimately the prices consumers pay for goods.

I still think that CP and CSX would make better merger partners, and this may be a
way to get the ball rolling in that direction again. I am waiting to hear what CN thinks about all this. Presumably, many of EHH's protoges are at CN and would willingly be part of his grand plan.

Nevertheless, in order to compete with trucking in this new period of low fuel prices, and the uncertainty that the enlarged Panama Canal or even the proposed Nicaraguan Canal will bring, mergers are necessary.

King Coal is dying at a quicker pace, so finding an advantage for intermodal, unit and good old old merchandise over trucks and ships is more important than ever. Longer hauls on a single carrier are the key.

At least EHH has a reputation for not allowing cars to sit and gather dust. The eastern carriers could use some help in that regard.

Well stick a fork in #611 if this happens. She will be done! "The Southern Serves the Yukon Eh?"

krm152 Wrote:
-------------------------------------------------------
> The TO pundits keep failing to mention that a CP
> acquisition of NS would have to be approved by the
> Surface Transportation Board (STB).
> ALLEN

Ah, at last, in one sentence someone has had the sense to mention the reason why this thread is a total waste of time and energy. 

Maybe we should just merge all railroads together and call it CPNSCSXKCSBNSFUP and paint the locomotive plaid color! LOL

Can't wait for the Heritage Unit to come out with the Norfork Southern paint scheme!