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The Beaver or the Maple Leaf?

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The Beaver or the Maple Leaf?
Posted by NKP guy on Tuesday, April 20, 2021 6:57 AM

   Now that Canadian National is in the game to take over the Kansas City Southern, who do you think will ultimately gain the prize?  Why?

   Too bad I sold my KCS shares a long time ago.

 

 

 

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Posted by Juniata Man on Tuesday, April 20, 2021 7:52 AM

Perhaps the "Solomons" on the STB will simply order that the baby be split. 

Seriously; if this turns into a major bidding war, the eventual winner will have to effect serious cuts - excuse me - "efficiencies" and rate increases to help recover the investment. Rail shippers, employees and communities will be the losers.

I'll also surmise the STB will now be forced to consider any merger or acquisition involving KCS using the newer merger review process.

CW

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Posted by BaltACD on Tuesday, April 20, 2021 8:36 AM

I get the feeling that CN really doesn't want KCS, as that could very likely bring about a STB rejection of the deal account CN then holding a monoply on the N-S section of the central USA.

What CN is trying to do is to raise the price for CP's acquisition of KCS and thus limiting the resouces that CP can bring to bear on competing with CN in their shared areas of competition.

Never too old to have a happy childhood!

              

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Posted by Ulrich on Tuesday, April 20, 2021 9:23 AM

Hopefully neither. Let KCS remain independent.. That way KCS can remain flexible to work with both railroads and others on a case by case basis. Both CN and CP would be better off to focus on optimizing their current networks. 

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Posted by CSSHEGEWISCH on Tuesday, April 20, 2021 10:10 AM

That sounds good in theory except for the fact that CN reaches the Gulf of Mexico and CP doesn't.

The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Posted by Ulrich on Tuesday, April 20, 2021 10:16 AM

An independent KCS would allow both access to KCS based on negotiated run through and marketing agreements while maintaining competition. Were KCS to go to one or the other competition would suffer as either CN or CP would be locked out. 

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Posted by Gramp on Tuesday, April 20, 2021 11:21 AM

21% premium. 30billion? $325 a share? I thought trucks were wiping out trains.   

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Posted by SD60MAC9500 on Tuesday, April 20, 2021 12:05 PM

CN+KCS is a much better fit.

Rahhhhhhhhh!!!!
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Posted by CSSHEGEWISCH on Tuesday, April 20, 2021 1:50 PM

SD60MAC9500

CN+KCS is a much better fit.

 
Except for the fact that it would establish a Midwest/Canada to Gulf monopoly, which wouldn't sit too well with the STB.
The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Posted by Ulrich on Tuesday, April 20, 2021 2:01 PM

At best any merger will come with lots of restrictions and conditions. Would be better for CN and CP to work closely with KCS on marketing/run through arrangements without going the merger route. 

A CN/KCS merger would create North America's third largest railroad, much to the disadvantage of CP, not to mention anything resembling healthy competition  between Canada, the Midwest and Mexico.  

Maybe NS or CSX will put in a bid as well.. this would make as much sense given the amount of trade between Mexico and the Eastern US. 

 

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Posted by MidlandMike on Tuesday, April 20, 2021 7:56 PM

CN getting KCS would give them 2 routes between Illinois and Texas, and one (probably KCS) would be downgraded.  I think CN is just trying to wreak havoc.

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Posted by BaltACD on Tuesday, April 20, 2021 8:20 PM

MidlandMike
CN getting KCS would give them 2 routes between Illinois and Texas, and one (probably KCS) would be downgraded.  I think CN is just trying to wreak havoc.

Feature they are trying to drive up the price for CP to pay and thus weaken CP financially after the deal is done.

Never too old to have a happy childhood!

              

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Posted by Flintlock76 on Wednesday, April 21, 2021 8:24 AM

Honestly, I can't say it matters to me what they do, I don't have any KCS stock.

I DO have a pile of Jay Gould guaranteed Erie stock I'm still waiting for the rebound on!  It's been a long wait.  Bang Head

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Posted by ns145 on Wednesday, April 21, 2021 8:31 AM

.

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Posted by NKP guy on Wednesday, April 21, 2021 9:00 AM

   

Flintlock76
I DO have a pile of Jay Gould guaranteed Erie stock I'm still waiting for the rebound on!  It's been a long wait.  

    Getting rich on those famous Erie dividends, are you?

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Posted by Flintlock76 on Wednesday, April 21, 2021 11:05 AM

NKP guy

   

 
Flintlock76
I DO have a pile of Jay Gould guaranteed Erie stock I'm still waiting for the rebound on!  It's been a long wait.  

    Getting rich on those famous Erie dividends, are you?

 

Don't I wish!  I spent last weekend in a saloon grumbling over shots of "Old Popskull" with Commodore Vanderbilt over that very subject!

(I'm glad somebody got the joke!  Thanks!)   Wink

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Posted by SD70Dude on Wednesday, April 21, 2021 11:23 AM

I heard a good one at work yesterday.

KCS hired a former CN exec named John Orr recently.  Orr was a card carrying member of the 'Hunter Youth' and apparently has a very hot temper and a short fuse (one story involves him punching a hole through a flatscreen monitor).  Orr ended up being unpopular with the rest of the executive suite, and ultimately resigned before he could be fired.  

This offer is JJ Ruest spending $34 billion just so he gets to fire Orr again!

Greetings from Alberta

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Posted by traisessive1 on Wednesday, April 21, 2021 12:59 PM

CN doesn't want this CP deal to go through as it threantens the interchange agreements CN has with the KCS. Whether or not CN really wants the KCS, a CP merger is bad news for them and will very likely take a chunk of traffic away.

CN also knows that CP is no real threat as they currently stand, so if they can keep them down and prevent them from making any big moves, they stay the big dog and CP keeps picking up the CN scraps. 

10000 feet and no dynamics? Today is going to be a good day ... 

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Posted by Flintlock76 on Wednesday, April 21, 2021 4:15 PM

SD70Dude
  Orr was a card carrying member of the 'Hunter Youth'

Oh wow, that says so much in so few words!

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Posted by Overmod on Wednesday, April 21, 2021 4:20 PM

Is anyone else seeing the CyaNide propaganda popping up relentlessly in their forum ads from "connectedcontinent.com"?

They must REALLY want Orr fired again!

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