http://www.progressiverailroading.com/canadian_pacific/news/Report-Shuster-leaning-toward-no-on-CP-NS-merger--47365
Never too old to have a happy childhood!
Paul,
Got the same flier, had pretty much the same thought. Like some intern sent it as an afterthought. Kind of an 'oh S---' moment
Bob
Miningman A Union Pacific/Canadian Pacific/Kansas City Southern system under one banner would be a formidable railroad.
A Union Pacific/Canadian Pacific/Kansas City Southern system under one banner would be a formidable railroad.
Mr. Wizlish's notes on ownership of Canadian railroads is correct, and actually forms the unpinnings for the opinion that if - "if" - an endgame in the East occurs, the end result will be UP and BNSF owning the lion's share of the Eastern systems and each of the Canadian roads receiving a smaller piece of the pie to give each of them a route to the Northeast from Chicago and Buffalo, a route from Chicago and Detroit to Atlanta and the Southeast, and in CP's case, access to at least Mobile on the Gulf Coast.
For example, it is not too hard to foresee in an intermodal-centric future of railroading that a railroad like BNSF could do very well hauling intermodal consumer goods out of Mexico and the West Coast to the 2/3 of the population that lives east of the Mississippi River.
In that regard, the former Southern from New Orleans through Birmingham to Atlanta and Charlotte would end up being a valuable intermodal route that would make a nice approximately 1150 mile haul from Laredo to Atlanta and about 1400 miles to Charlotte, with West Coast stacks coming on line at Birmingham from the old Frisco as they do now. Routes from St. Louis to the Ohio Valley cities of Louisville and Cincinnati on the former Southern would also be natural extensions of the former Frisco for intermodal. Finally, the whole northern tier from Chicago to NY/NJ and the Northeast, with branches serving Detroit, Indianapolis, and Columbus would be a natural extension of the former ATSF. While some of this is already happening with a revenue split of two carriers, it is not unreasonable to surmise that with sole ownership, BNSF would end up supercharging all of those routes.
Meanwhile, CP could reach Atlanta and Mobile down the former CNO&TP, and the Northeast on the former NKP and Lackawanna. Both of those would also be natural extensions of the current flow of CP traffic.
Of course, there are dozens of variations that can be conceived.
Most likely, however, it looks like the status quo for now unless CP somehow prevails with NS stockholders, in which case almost anything is possible given the comments from other railroads on becoming active participants if that happens.
kgbw49 and each of the Canadian roads receiving a smaller piece of the pie to give each of them a route to the Northeast from Chicago and Buffalo
CN already has their route, and thinking about it, CSX might accept a reasonable offer on their trackage fron Chicago to Grand Rapids and on to Detroit. CSX traffic on those two lines has been minimal for several years. They've already leased or sold the Saginaw sub north of Flint, and from Flint south to Plymouth traffic is again light.
Norm
BaltACD http://www.progressiverailroading.com/canadian_pacific/news/Report-Shuster-leaning-toward-no-on-CP-NS-merger--47365
Not surprising. His dad (Bud) was in the exact same spot during the NS/ Conrail takeover. A takeover that resulted in the closure of the Holidaysburg car shops and the loss of many decent jobs in his home district.
It's been fun. But it isn't much fun anymore. Signing off for now.
The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any
Good consequence to point out Dakatofred, however if in fact UP/CP/KCS came into existence it would have to be countered with BNSF/CN and certain trackage rights to insure competition with Mexican interchange. UP/CP/KCS just feels right in terms of thinking for the future and nation building. CP/NS is just insulting and short sighted, certainly has potential for a mess but what do I know. Also I still believe the border means something, especially with changing political forces but I suppose $'s and investments do not worry too much about borders and can be moved around the world with a stoke of the keyboard.
Miningman, I agree with you wholeheartedly about the continuing relevance of borders. We citizens -- and our representatives, the pols -- can continue to mind them even if the money boys don't want to.
Also about CP taking over NS. It's ungainly, a "transcontinental" for the eastern United States and for western Canada. Also, to be blunt, who needs the lion's share of the profits going to Calgary instead of Norfolk?
Ungainly is the perfect word to describe it. But money and politics are pretty much in lockstep. People vote with their minds and their wallets... which is why we have international trade. The people who poo poo trade with China and Mexico are generally easy to find in any Walmart aisle, shopping for the cheapest foreign made product they can find. I agree that an NS and CP merger would be ungainly to say the least.. it really makes no sense to have a diagonal transcontinental that cuts across regions of the continent that currently don't have much trade. But the argument made against a Canadian company owning an American one is moot.. that ship has sailed long ago. We live in an interconnected world where trade and ownership lines trump other considerations..at the root of it the will of the people expressed through supply and demand made that happen.
The following is taken from a daily news blog published by Fortune magazine:
"Billionaire investor William Ackman has managed to erase his entire 40% return of 2014, a performance that put him at the pinnacle of the hedge fund world. His Pershing Square Holdings portfolio has lost 17.3% so far in 2016, the fund told investors on Wednesday. When you combine that with the 20.5% drop in 2015 in a relatively flat year for markets, the fund's declines are now greater than its 2014 gain. Valeant Pharmaceuticals, which has been part of Ackman's portfolio for only a year, has been the fund's main loser."
A lot of professional and individual investors are underwater for 2016 to date, but Mr. Ackman also suffered major losses in 2015. Perhaps the situation with the NS offer resembles that of the last play by a football team facing a loss -- throw a jump ball into the end zone and hope it works out.
I don't think so. Ackman is still very rich and he no doubt understands market volatility. Market declines happen.. to the seasoned investor they're simply welcome buying opportunities.
Blame Canada! Laughable.
"Shelia: Well? Blame Canada, blame Canada, it seems that everythings gone wrong since Canada came along, blameCanada, blame Canada Copy shop attendent:They're not even a real countryanyway"
https://www.youtube.com/watch?v=DBpgcZ1zYJs
Victrola1 Blame Canada! Laughable. "Shelia: Well? Blame Canada, blame Canada, it seems that everythings gone wrong since Canada came along, blameCanada, blame Canada Copy shop attendent:They're not even a real countryanyway" https://www.youtube.com/watch?v=DBpgcZ1zYJs
The young lady has it right.. why bundle up when its obviously so warm out?
​​​​​Canadian Pacific (TSX:CP) (NYSE:CP) has received over 80 letters of support from a broad cross section of customers for CP's proposal to acquire Norfolk Southern Corp. (NS); 62 of these letters have been posted to the Surface Transportation Board (STB) website. That brings the number of letters from shippers in support of the proposed CP-NS combination to more than three for every one shipper letter in opposition.
http://www.cpr.ca/en/investors/cp-receives-overwhelming-support-from-shippers-for-proposed-cp-ns-combination
Today's news from the front in the ongoing War of the White Papers.
I'll only be impressed when they come back with letters of support from NS shippers and not their own.
Victrola1 CP receives overwhelming support from shippers for proposed CP-NS combination See all newsFebruary 25, 2016 Calgary, AB ​​​​​Canadian Pacific (TSX:CP) (NYSE:CP) has received over 80 letters of support from a broad cross section of customers for CP's proposal to acquire Norfolk Southern Corp. (NS); 62 of these letters have been posted to the Surface Transportation Board (STB) website. That brings the number of letters from shippers in support of the proposed CP-NS combination to more than three for every one shipper letter in opposition. http://www.cpr.ca/en/investors/cp-receives-overwhelming-support-from-shippers-for-proposed-cp-ns-combination Today's news from the front in the ongoing War of the White Papers.
The first batch were just signed form letters written for them by CP. This new batch any different?
I'll be impressed when UPS, Ford or GM sign one. Oh, wait a minute, they already chimed in "against"!
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
The War of the White Papers escalates. When do we get newsreel footage from the front?
https://www.youtube.com/watch?v=mWQf13B8epw
I'm impressed that HH is still in the game, unfazed it appears. That's how you win.. you just don't quit. NS doesn't know what hit 'em.. he's going to wear them down. Government Motors', Ford, and UPS's votes against aren't going to stop this man.
Ulrich I'm impressed that HH is still in the game, unfazed it appears. That's how you win.. you just don't quit. NS doesn't know what hit 'em.. he's going to wear them down. Government Motors', Ford, and UPS's votes against aren't going to stop this man.
NS is known for their stubbornness. EHH may have met his match. Besides, as old as he is, time is NOT something he has in abundance.
I keep getting the feeling that CP picked NS as their target because of Jim Squires being in the top job for only 2 years and having been promoted from VP Administration (ie. chief paper pusher) and thus not the kind of personality that is used to the hard ball nature of railroad operations and financial wars and does not possess a resume that show proficiency in either. Squires will either earn his stripes at NS or become a part of CP
I trust that Mr. Stripes will earn his stars.
Johnny
Exactly who, other that CP's largest stockholders would benefit from such a merger?
Americans will benefit, as we can send you way better chocolate bars ( Caramilk, Crispy Crunch, Coffee Crisp and so on ) and those maple sugar cookies shaped liked little leaves and some really good beer at a substantial discount.
Just kidding of course. One would have to wade through all those pages of the merger proposal to see what the supposed benefits would be. CP has a dedicated web page regarding the merger which also makes the benefits clear.
MiningmanAmericans will benefit, as we can send you way better chocolate bars ( Caramilk, Crispy Crunch, Coffee Crisp and so on )
AMEN, brother! I don't believe those pour souls get "Oh Henry!"s, "Aero"s or "Smarties" either.
Although, did you see a recent episode of Limitless(CBS Tuesday's) where they identified a suspect as Canadian because they found an empty "Smarties" box in his home? It was described as Canadian "M&M"s.
Bruce
So shovel the coal, let this rattler roll.
"A Train is a Place Going Somewhere" CP Rail Public Timetable
"O. S. Irricana"
. . . __ . ______
MiningmanOne would have to wade through all those pages of the merger proposal to see what the supposed benefits would be
Uhh huh, So we are expected to accept at face value accolades touting "Forward looking" intangibles, followed closely with this disclaimer:
"Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information,"
Essentually they expect to implement the same measures already employed at CP rewarding stockholders in the near term, while expecting the long term to fend for itself? And if (when) that proves too big a nut for them to crack alone, the future of America depends upon yet another "too big to fail" bailout? Gee I can hardly wait. Sounds to me as though what CP has in mind for NS rhymes with "cape".
Tim Horton's recently opened it's first location in my town. Hardly seems worth all the to-do I've heard for years.
And, if you did, you would find no substance, just fluff. There isn't even ballpark estimates of benefits.
The whole economic arguement is based on:
1) If NS were to operate at the North American avg OR..
and
2) EHH is magic.
Convicted One Tim Horton's recently opened it's first location in my town. Hardly seems worth all the to-do I've heard for years.
They're showing up here, but we're close to the border. I got some "Timbits" in Toronto last year and really didn't care for them.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
They're doughnuts.. or donuts. One can only expect so much from a donut regardless of whose logo hangs in the store window.
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