Canadian Pacific Railway Ltd., the second-biggest railroad in Canada, is exploring a takeover of U.S. carrier Norfolk Southern Corp. in a fresh attempt to consolidate the North American industry, according to people familiar with the matter.
http://www.bloomberg.com/news/articles/2015-11-09/canadian-pacific-said-to-explore-takeover-of-norfolk-southern
cnbc really goofed up read short article and tell me what United Pacific railroad is.
http://www.cnbc.com/2015/11/09/norfolk-southern-canadian-pacific-shares-jump-amid-deal-report.html
Can't you read? Both articles are clear, but CNBC either typoed or erroniously put 'United' for 'Union', obviously.
C&NW, CA&E, MILW, CGW and IC fan
blue streak 1 cnbc really goofed up read short article and tell me what United Pacific railroad is. http://www.cnbc.com/2015/11/09/norfolk-southern-canadian-pacific-shares-jump-amid-deal-report.html
Johnny
schlimmCan't you read? Both articles are clear, but CNBC either typoed or erroniously put 'United' for 'Union', obviously.
So is mud somedays. There are time we have to wonder what they really meant. It's pervasive in the media to use wrong words. One local TV station's web site constantly says "Person killed after house fire." Oh! Did they drag him out and shoot him? Their command of the English Language leaves something to be desired. [That from a guy who is NOT an English major.]
Norm
Well, let's get to the really important stuff - hopefully 611 can run on Buckingham Branch.
Norm48327 schlimm Can't you read? Both articles are clear, but CNBC either typoed or erroniously put 'United' for 'Union', obviously. So is mud somedays. There are time we have to wonder what they really meant. It's pervasive in the media to use wrong words. One local TV station's web site constantly says "Person killed after house fire." Oh! Did they drag him out and shoot him? Their command of the English Language leaves something to be desired. [That from a guy who is NOT an English major.]
schlimm Can't you read? Both articles are clear, but CNBC either typoed or erroniously put 'United' for 'Union', obviously.
Oh come on, Norm. The reason Streak said that was not because he cannot read or lacks the minimal familiarity with the subject to mentally correct the typo or whatever error. He posted that because in some quarters it is de rigueur to poke (fun or in the eye?) the hated media. Had it been in Fox, I wonder if he would?
Try reading papers of otherwise good students, who often say, someone "defiantly" chose X when they mean "definitely" of course. Even worse is to have to repeatedly see "the dinning car" or "the dinner" instead of Dining and Diner from posters on here and not say anything. We can assume they are not complaining of excessive noise levels.
Last I heard, not going to happen.
It's certainly doable but CP better bring lots and lots and lots of cash, eh?
Editor Emeritus, This Week at Amtrak
Maybe the merger is good, maybe not, but it seems sad to have the NS (and all its predecessor lines) taken over by a foreign railroad.
Is cp still run by hunter Harrison? If so he shut down cp steam program in 2013 and was then very critical of ns program.
ROBERT WILLISON Is cp still run by hunter Harrison? If so he shut down cp steam program in 2013 and was then very critical of ns program.
Hunter is on his last legs age wise and won't be in the job of CEO much longer hence I think he wants his legacy to be the guy that finished the transnational railroad merger wave which started back when KCS and UP bid over Mexico's railways.
As for the choice. I think NS is a much stronger partner for CP than CSX would have been. CSX would be a better pairing for BNSF or UP. I don't think UP is even interested in a another merger with it's Mexican holdings. So the question is will BNSF attempt a purchase of CSX? CSX keeps repurchasing it's stock trying to get the valuation up for some reason........so maybe CSX is not interested in a merger with a Western railway?
Maybe after this merger wave some visionary will finally connect the Alaska railroad with the rest of the continent and possibly extend the standard gauge systems Southward through Guatamala into South America???
As far as I am concerned, CP has totally screwed up the Soo Line and especially the DM&E. The only way this works is if NS people are in charge. But if EHH is in charge, heaven help us.
I, too, think NS would be a much better choice as opposed to CSXT. At the same time, however, I have a feeling that this is all merely a sideshow without substance; hiding the "real" talks that are going on.
I'll believe it when I hear someone from CP or NS announce it. "Unidentified sources" sounds too much like the custodian at CP HQ may have overheard somethng and whispered it to a rookie reporter..
ChessieCat123 Control of a major piece of national infrastucture by a foreign corperation that is essentional to our national defence does not sit well with many people.
Control of a major piece of national infrastucture by a foreign corperation that is essentional to our national defence does not sit well with many people.
And the old IC, GTW and Soo are not "essentional to our national defense"? A ridiculous argument.
An "expensive model collector"
So, is this going to move a deal where NS shops around for a better deal, such as with UP or BNSF? What of CSX? Will they then cry "woo is me, I need a buy-out too!" and go looking to BNSF and UP for an offer? Where the market matures and there is only big fish with cash, the next thing is to buy your way into ever bigger markets" Economics 101.
I wonder where MILW gets his info that Hunter Harrison is "on his last legs age-wise and won't be in the job of CEO much longer."
CP hired Harrison a couple of years after CN had aged him out. There's a message in there. When Harrison retires, I suspect it will be on his schedule. I doubt the board will be in a hurry, given what he's accomplished for the company.
As for mergers, I think CP's destiny continues to be KCS. KCS is not as expensive as it used to be -- shares $90 vs. $80 for NS (altho I can't tell you how many shares of either are out there) -- and, in my opinion, gives CP so much more in the way of growth potential than NS.
Firelock76 Last I heard, not going to happen.
Remember The Sothern Pacific/Santa Fe marriage? It was such a 'done deal' in 1983 they were already painting equipment [Kodachrome scheme] to reflect the 'new' company..
Then The ICC, and Justice Dept's steped in, and it was C. Interruptus for their 'done Deal'....In 1988 the Rio Grande (DRG&W) was the successful bidder at about $1B plus for the remaions of SP. and its Corporate debt. In 1995 Santa Fe merged with BN to become Burlington Northern & Santa Fe, and later BNSF.. The following year UPRR bought SP. ( At least, I think, that is the way I remember it all)
The only way this would happen is if a new Board of Directors were hired for the NS Corp, then they approved the merger.
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If this transaction gets the high ball, ultimately we may see both NS and CSX carved up between the two Canadian roads and the two Western roads in the manner that Conrail was divided between NS and CSX.
I believe it is a rumor to create a diversion from the bad press Bill Ackman of Hedge Fund Pershing Square is taking from his big loss in Valeant Pharmaceuticals for overpricing drugs etc. I would be suprised if it goes any further in the near future.
It will NEVER happen. The STB will NOT allow two Class 1 railroads to merge. It would diminish competition. Then there is the Anit-Trust division of the Justice Department.
If this happens bring me a super size plate of humble pie!!!
dakotafred As for mergers, I think CP's destiny continues to be KCS. KCS is not as expensive as it used to be -- shares $90 vs. $80 for NS (altho I can't tell you how many shares of either are out there) -- and, in my opinion, gives CP so much more in the way of growth potential than NS.
CPRS + KCS makes the most sense. All this other stuff is nothing more than a smokescreen. No WAY BNSF or UP sit still and let NS get gobbled up like this.
dakotafred I wonder where MILW gets his info that Hunter Harrison is "on his last legs age-wise and won't be in the job of CEO much longer." CP hired Harrison a couple of years after CN had aged him out. There's a message in there. When Harrison retires, I suspect it will be on his schedule. I doubt the board will be in a hurry, given what he's accomplished for the company. As for mergers, I think CP's destiny continues to be KCS. KCS is not as expensive as it used to be -- shares $90 vs. $80 for NS (altho I can't tell you how many shares of either are out there) -- and, in my opinion, gives CP so much more in the way of growth potential than NS.
I think you need to look at a recent photo of him and come to your own conclusion. He does not look far from the grave in his recent photo. Doesn't matter what the board thinks. The Railroad CEO title does not make you immortal.
ChessieCat123Warren Buffet who wants to add value to the company nor the country as a whole.
I got news for you......Warren is in the game just for the money he could care less about adding value to anything. He just cares about return on his investment. He has made the latter statement several times in his past. Investment return are what his investments are all about.
I think a major driving force in this is the possibility of inversion, similar to what Burger King did in forming New Red. As noted, operationally other mergers would make better sense, so there has to be a reason the markets bid the NS share price up so high on this news. It's very probably not because there is widespread enthusiasm that EHH, now 71, will be optimizing the operating ratio after the merger gets through STB approval. (This especially with Obama and probably his successor in office becoming increasingly incensed over inversions, perhaps?)
Per the Financial Post and CP's web site, EHH officially came on board in June 2012 with a four year agreement and an option for a fifth, which puts it to June 2017.
Born in 1944 so he would be approaching, or at, age 73 at that time.
Would 19 months from now be sufficient time to get a merger proposal through the STB?
With the flurry of activity that would set off regarding competitive-response moves, it would almost seem too short a time.
Here is one piece of conjecture, for example.
Canada will not let go of its two railroads, ever. And it is hard to see the US allowing complete foreign ownership of the whole Class 1 system.
So it is possible to foresee a result that the two Eastern roads are divided up between the two Canadian roads and the two Western roads. That would result in CN-CP in Canada and BNSF and UP west of Chicago and the Mississippi as they are now, and all four of them having large co-equal slices of the market east of the Mississippi through a combination of line purchases and shared track arrangements for each.
CP-NS would be the catalyst. But four companies would have more capital and financial horsepower to bring to the process. It would seem that something that complex would almost certainly take more than 19 months.
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