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Update: CP ends efforts to merge with NS


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#121 CNJRoss

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Posted 12 April 2016 - 09:26 AM

The Virginian-Pilot, Norfolk, VA 4/11:
 

Norfolk Southern avoids hostile takeover attempt by Canadian Pacific

 

Norfolk Southern Corp. has escaped the unwelcome advances of a rival rail company after Canadian Pacific Railway Ltd. abandoned its nearly $30 billion hostile takeover bid Monday.

 

The decision came a few days after the Justice Department said Canadian Pacific’s plan to buy Norfolk Southern before regulators vetted the merger didn’t make any sense.

 

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#122 CNJRoss

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Posted 12 April 2016 - 11:34 AM

Railway Age, 4/11:

 

Editorial

See ya later, what’s-your-name

Written by  William C. Vantuono, Editor-in-Chief

 

Well, it’s all over but the ruminating and regurgitating: Hedge fund king Bill Ackman had his blinders ripped off, read the handwriting on the wall, and wisely deep-sixed his attempt to bolster his sagging pockets by going after Norfolk Southern, a damn good railroad that doesn’t need a radical makeover.

 

Canadian Pacific is a great railroad. Always will be. E. Hunter Harrison is a great railroader, an icon, arguably one of the best operating executives of all time, not to mention a two-time Railway Age Railroader of the Year. He always will be. Stanley Crane didn’t need a transcontinental to shape his legacy. Neither did Bill Brosnan. Or John Barriger. Or the Claytor brothers, Robert and Graham. Or Jack Fishwick. Or Al Perlman. Or William C. Van Horne. Or James J. Hill. Or William Wallace Atterbury. Or Samuel Rea. Neither does Hunter Harrison. He and his leadership transformed the Illinois Central, CN, and CP into better railroads.

 

 

SNIP

 

Finally, from someone very close to me: “Money shouldn’t always have the last word. The biggest mistake a CEO can make is believing that he or she is only accountable to a shareholder, or shareholders. Companies, CEOs included, need to remember that they also report to society and its many stakeholders. This is an example of society saying ‘no’ to a shareholder driven only by greed and profit, which is a very narrow focus. The old-fashioned, old-school ‘business as usual’ approach doesn’t work any more. More and more, companies are going to be held accountable to society for their intentions and actions. What happened here is encouraging!”

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#123 CNJRoss

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Posted 12 April 2016 - 12:40 PM

U.S. Representative Bill Shuster news release:

 

Shuster Statement on Canadian Pacific's Termination of Norfolk Southern Merger Proposal

04/11/16

WASHINGTON, DC –Transportation and Infrastructure Committee Chairman Bill Shuster (R-Hollidaysburg) today released the following statement on Canadian Pacific Railway’s decision to terminate its proposal to merge with Norfolk Southern:

 

“I believe this proposal was bad for America, and our Nation’s military also raised concerns about the negative implications it could have for national defense.  This merger was not in the best interests of the country, the U.S. freight transportation system, railroad employees, and my constituents in Central and Southwestern Pennsylvania, specifically the hundreds of men and women at the Juniata locomotive shop in Altoona. I am glad that Canadian Pacific heard that message and decided to move on.  The railroads should now focus on improving the movement of goods to continue our economic growth.”

 

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#124 Sloan

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Posted 14 April 2016 - 08:13 AM

 

 

Canadian Pacific calls off Norfolk Southern merger

 

CANADIAN Pacific (CP) announced on April 11 that it has abandoned its bid to merge with Norfolk Southern (NS), including the withdrawal of a resolution asking NS shareholders to vote in favour of good-faith negotiations between the two railways.

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#125 CNJRoss

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Posted 21 April 2016 - 08:29 PM

Canadian Press via CTV News, 4/20:
 

Political influence helped kill Norfolk Southern merger, CP Rail CEO says

 

Canadian Pacific Railway's proposed merger with Norfolk Southern was killed by political influence and a system that stacked the deck against a Canadian company, chief executive Hunter Harrison said Wednesday.

 

"Is it more difficult for us? Yes as a Canadian company," he said in an interview ahead of the railway's annual meeting in Toronto.

 

"Can we overcome it? Yes. It's just a little harder."

 

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#126 CNJRoss

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Posted 27 April 2016 - 01:14 PM

Progressive Railroading, April 2016:
 

Windmills 1, Quixote 0: CP calls off quest for NS — analysis by Tony Hatch

 

“Thou hast seen nothing yet.” 

― Miguel de Cervantes Saavedra,
Don Quixote

“Railways have a bright future, just not via M&A”
— Tony Hatch


Bowing to what seemed the inevitable, E. Hunter Harrison, Bill Ackman and Canadian Pacific on April 11 called off their attempt to merge with Norfolk Southern. Although apparently supported by the investment community, CP halted the effort without a once-expected proxy fight that would have proved that support.

 

SNIP

 

CP did fight the good fight, often out-maneuvering the opposition and often on CP's terms; after all, one cannot win often by trying to “out-OR” E. Hunter Harrison. To win, one must change the rules of the debate — toward growth, capex, service. Toward the philosophy of network ownership and stewardship, and away from operational precision ... as critical as that is! Toward return on invested capital.

In effect, the debate centered on this question: Is a railroad its network (the Class I belief) or is it its operators (Hunter)? And CP “lost” because the Class I stakeholder group opposition (6-1) proved too great.

 

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