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What if Hunter is trying to drive down CSX Stock Price to make it ripe for a merger.

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RME
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Posted by RME on Saturday, August 26, 2017 6:30 PM

kgbw49
Not that it would make any difference, but Soo Line Corporation is still in existence as a U.S. corporation. It is wholly owned by Canadian Pacific but still out there as a legal entity.

Wouldn't matter unless it's an American owned entity acquiring Canadian railroads.

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Posted by kgbw49 on Saturday, August 26, 2017 6:26 PM

Not that it would make any difference, but Soo Line Corporation is still in existence as a U.S. corporation. It is wholly owned by Canadian Pacific but still out there as a legal entity.

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Posted by caldreamer on Saturday, August 26, 2017 6:15 PM

The STB would NEVER let it happen under ANY circumstances.  So, even if EHH was thinking about it is a moot point.  Dead LONG before it gets anywhere.

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Posted by Murphy Siding on Saturday, August 26, 2017 1:10 PM

runnerdude48

Why would he want to drive the stock price down?  He owns a ton of shares.

 

Reminds of a joke: Did you hear about the Norweigan that opened a bank?  He loaned out all the money and then split town.

-I'm Norweigan

Thanks to Chris / CopCarSS for my avatar.

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Posted by Shadow the Cats owner on Saturday, August 26, 2017 12:35 PM

The second CP offers to buy CSX they are going to be in a Bidding war they can not win against either Berkshire Hathaway for them or UP to get the loser of the NS war.  Of the 4 major class 1's CN UP CP and BNSF that would be involved for the NS and CSX BNSF has the most money they can bid for either railroad thanks to being owned by Bershire Hathaway.  UP can outspend CN and CP both on projected revenue alone.  So CP and CN would lose out just in dollars alone.

RME
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Posted by RME on Saturday, August 26, 2017 10:21 AM

schlimm
There is certainly a long tradition in corporate railroading of equity and other financial manipulations of a shady nature (Fisk, Morgan, etc.).

And much more fun to look at the more modern versions: McGinnis, Anschutz, Riffin, and the Reichmans in Toronto.  Folks tend to think the weaselry on a grand scale ended with the rise of trust-busting and the retirement of unregulated laissez-faire in business.  It most certainly did not.

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Posted by schlimm on Saturday, August 26, 2017 10:12 AM

RME

 

 
runnerdude48
Why would he want to drive the stock price down?  He owns a ton of shares.

 

Because he has no intention of selling those shares when the stock price is down (unless he needs paper losses for tax reasons) and the 'owners' have no intention of running the company through formal bankruptcy to destroy the equity in those shares...

Look up how a typical pump-and-dump works, and remember from the Soros/Peabody debacle that an analogue of that works quite nicely in reverse.

And yes, were it possible to contemplate a renewed CP-CSX merger with a nominally American company in the driver's seat (it's not, under current and very likely future Canadian law) it would CERTAINLY benefit 'some of the players' if the CSX contribution came at lower value per share.  Temporarily.  Then watch the shares in the combined company rise after all those so-inconvenient small shareholders have been bought out at the lower price...

 

There is certainly a long tradition in corporate railroading of equity and other financial manipulations of a shady nature (Fisk, Morgan, etc.).

C&NW, CA&E, MILW, CGW and IC fan

RME
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Posted by RME on Saturday, August 26, 2017 10:08 AM

runnerdude48
Why would he want to drive the stock price down?  He owns a ton of shares.

Because he has no intention of selling those shares when the stock price is down (unless he needs paper losses for tax reasons) and the 'owners' have no intention of running the company through formal bankruptcy to destroy the equity in those shares...

Look up how a typical pump-and-dump works, and remember from the Soros/Peabody debacle that an analogue of that works quite nicely in reverse.

And yes, were it possible to contemplate a renewed CP-CSX merger with a nominally American company in the driver's seat (it's not, under current and very likely future Canadian law) it would CERTAINLY benefit 'some of the players' if the CSX contribution came at lower value per share.  Temporarily.  Then watch the shares in the combined company rise after all those so-inconvenient small shareholders have been bought out at the lower price...

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Posted by runnerdude48 on Saturday, August 26, 2017 9:54 AM

Why would he want to drive the stock price down?  He owns a ton of shares.

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Posted by BaltACD on Friday, August 25, 2017 4:37 PM

CandOforprogress2
At the bequest of the Pershing Capital and the hedge fund honchos.

The SEC should arrest him for attempted insider stock manipulation.  Suggest he be held without bail.

Never too old to have a happy childhood!

              

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What if Hunter is trying to drive down CSX Stock Price to make it ripe for a merger.
Posted by CandOforprogress2 on Friday, August 25, 2017 12:13 PM

At the bequest of the Pershing Capital and the hedge fund honchos.

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