OMAHA, Neb. (AP)—U.S. News & World Report reported today that Norfolk Southern (NS) denied Canadian Pacific’s (CP) takeover offer, but it appears that CP persists, as they are reportedly set to bring their proposal to NS stakeholders.
Norfolk Southern (NYSE: NSC) announced that its board of directors has unanimously rejected Canadian Pacific’s (NYSE:CP) previously announced unsolicited, low-premium, non-binding, highly conditional indication of interest to acquire the Company for $46.72 in cash and a fixed exchange ratio of 0.348 shares in a new company that would own Canadian Pacific and Norfolk Southern.
After a comprehensive review, conducted in consultation with its financial and legal advisors, the Norfolk Southern board concluded that the indication of interest is grossly inadequate, creates substantial regulatory risks and uncertainties that are highly unlikely to be overcome, and is not in the best interest of the Company and its shareholders.
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. The shares surged on the news. Canadian Pacific is raising financing and has held early-stage merger talks with Norfolk Southern, which is valued at about $24 billion, said two of the people, who asked not to be identified because deliberations are private. Discussions are preliminary and talks may not progress or lead to a deal, they said. Representatives for Canadian Pacific and Norfolk declined to comment. A move for Norfolk Southern, the second-biggest railroad in the eastern U.S., would revive Canadian Pacific’s effort to build a transcontinental carrier after talks with CSX Corp. failed last year. In floating the idea of a CSX tie-up, Canadian Pacific Chief Executive Officer Hunter Harrison upended the long-held view in the industry that it was fruitless to even discuss another merger because regulators would object. Read more from Bloomberg Business.
Canadian Pacific Railway Ltd. began operating a reduced freight schedule run by its managers on Feb. 15, after talks on a new contract broke down and more than 3,000 train engineers and conductors walked off the job.
Canada’s No. 2 railway and the Teamsters Canada Rail Conference failed to agree on terms including on scheduling and rest time. The railway reached a deal with a second union, Unifor, which represents safety and maintenance workers.
Canada’s two biggest railroads aren’t letting winter go unchallenged.
Canadian National Railway Co. (CNR) is strengthening its network, increasing employees and engines to keep trains running smoothly prevent another winter of icy and prevent another winter of profit-sapping gridlock. Canadian Pacific Railway Ltd. (CP) is putting additional staff on standby, redeploying some equipment to “strategic” locations, and building new sidings in case below-average temperatures halt cargos.
“Last year was an extraordinary winter,” Canadian Pacific Chief Operating Officer Keith Creel said in a Dec. 15 interview in Toronto. “The rolling equipment, the air-brake systems, the steel that you ride the trains on, the locomotives that have to operate at 40 below zero — there are certain things that just don’t work when it gets this cold.”
Canadian Pacific Railway has approached and been rebuffed by CSX about a merger that could bring together two of the world’s largest railroad operators, according to a published report Sunday afternoon on the website of The Wall Street Journal.
If a merger were negotiated, it could rally a volatile Wall Street this week and eclipse in size Berkshire Hathaway’s $26 billion purchase of Burlington Northern Santa Fe in 2010.
Canadian Pacific Railway Ltd. (CP) plans to more than double profit in four years as Chief Executive Officer Hunter Harrison seeks to improve efficiency by running longer, faster trains at Canada’s second-largest railroad.
Revenue will probably climb to C$10 billion ($9 billion) in 2018 from last year’s C$6.1 billion, the Calgary-based railroad said yesterday in a statement. Harrison discussed the forecast as he addressed analysts and investors in White Plains, New York, at the start of a two-day briefing.
SOUTH BELOIT, Ill. — A Savanna, Illinois, man is in stable condition after suffering a severed leg, hand and forearm Wednesday in a train accident in South Beloit.
Shawn Flickinger, 36, of Savanna, was airlifted near Oak Grove Avenue in South Beloit, to the OSF Saint Anthony Medical Center in Rockford, Illinois, after South Beloit Police officers responded to the scene of the accident around 7 a.m., according to Deputy Chief Adam Truman.
PIERRE, S.D. (AP) – A federal oversight board told Canadian Pacific Railway and BNSF Railway that they have until Friday to report their plans to ensure delivery of fertilizer shipments for spring planting of U.S. crops.
The Surface Transportation Board’s decision Tuesday comes in response to a hearing it held last week on recent service problems in the nation’s rail network. Farmers and representatives of agriculture producers told the board that delays in fertilizer delivery could disrupt planting.