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Post Info TOPIC: Canadian Pacific wants to merge with CSX?


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Canadian Pacific wants to merge with CSX?
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http://business.financialpost.com/2014/10/12/rival-u-s-railroad-csx-rejected-merger-proposal-from-cp-rail-sources-say/?__federated=1

 

Rival U.S. railroad CSX rejected merger proposal from CP Rail, sources say

A Canadian Pacific Rail maintenance worker climbs onto a locomotive in Port Coquitlam on May 23, 2012.
THE CANADIAN PRESS/Darryl DyckA Canadian Pacific Rail maintenance worker climbs onto a locomotive in Port Coquitlam on May 23, 2012.

Canadian Pacific Railway Ltd. had a merger proposal with U.S. railroad CSX Corp. turned away some time in the past week, said people familiar with the matter.

Its not clear whether Calgary-based Canadian Pacific will return with another proposal, said the people, who asked not to be named because the matter is private. The two companies together would have a market value of about $62.5 billion, according to data compiled by Bloomberg. The Wall Street Journal reported the overture earlier today.

CSX has a longstanding policy of not commenting on such rumours, Melanie Cost, a spokeswoman for the Jacksonville, Florida-based freight carrier, wrote in an e-mail. A Canadian Pacific spokesman, Marty Cej, said: We dont comment on market rumour and speculation.

A combination would create a carrier with transcontinental reach, connecting CSXs network in the eastern U.S. with a Canadian Pacific system spanning the width of Canada. Even with CSXs backing, a deal would face regulatory scrutiny. Pressure from U.S. officials forced Burlington Northern Santa Fe to abandon a takeover of Canadian National Railway Co. in 2000.

 

Canadian Pacific Chief Executive Officer Hunter Harrison floated the idea of a U.S.-Canadian rail merger in an Oct. 3 Bloomberg Television interview, saying any east-west combination would be possible.

Canadian Pacific could make another approach to CSX or may consider another target, one of the people said.

Canadian Pacific is Canadas second-largest carrier, behind Canadian National. The U.S. industry is dominated by four carriers, with CSX and Norfolk Southern Co. east of the Mississippi River and Union Pacific Corp. and BNSF Railway operating in the west. CSX is the third-biggest U.S. carrier.

Harrison, the former CEO of Canadian National, was hired out of retirement in 2012 after activist investor Bill Ackmans Pershing Square Capital Management began buying shares in Canadian Pacific and pushed for the ouster of incumbent Fred Green.

CSX is more than twice Canadian Pacifics size when measured by sales, with $12 billion in 2013 revenue. Canadian Pacifics total was C$6.13 billion ($5.49 billion).



-- Edited by YardSlug on Sunday 12th of October 2014 05:10:50 PM

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Force Majeure

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Enjoy your relationship with Hitler, Brothers.

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I got 4 years plus a couple months. (max)  It'll take at least that to hammer out a agreement and implement it.

Have at er boyz.. I could care less.



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http://blogs.wsj.com/moneybeat/2014/10/13/csx-vulnerable-if-cp-presses-takeover/?mod=yahoo_hs

 

CSX Vulnerable if CP Presses Takeover

 
Bloomberg News

If Canadian Pacific Railway Ltd.CP.T -4.69% chooses to press its rejected bid for rival railroad operator CSX Corp.CSX +9.55%, it may find some chinks in CSXs corporate armor.

All of Florida-based CSXs directors are elected annually, and investors owning just 15% of shares an unusually low bar can force a special election under the companys bylaws. That gives CP a potential path around a board that so far appears unwilling to negotiate.

CP also has activist investor William Ackman in its corner, a potential asset if things turn hostile. Mr. Ackmans Pershing Square Capital Management LP, which won a proxy fight at CP in 2012, still owns about 8% of the company, and both Mr. Ackman and partner Paul Hilal sit on the board.

Pershing Square is currently teaming with another hostile M&A bidder, Valeant Pharmaceuticals International Inc.VRX.T -3.05%, on a hostile bid for rival Allergan Inc.AGN -0.87% In February, the hedge fund began building a 9.7% stake in Allergan. Roughly two months later, Valeant and Pershing Square announced they were teaming up on a then-$46 billion bid for Allergan.

Cowen & Co.s Jason Seidl says a similar playbook could be in the cards for CP, which is run by Mr. Ackmans hand-picked CEO, Hunter Harrison.

Given the tenacity of CPs management, we would not be surprised if the company resorts to other means for making the deal happen, Mr. Seidl wrote in a Monday note.

The WSJ reported Sunday that CSX in the past week spurned an overture from CP that would have given rise to an industry giant, with a combined market value of more than $60 billion, $18 billion in revenue and some 35,000 miles of track across North America connecting vast oilfields in North Dakota and Canada with refineries in the eastern U.S.

Still, a hostile deal for CSX would be complicated. Any transaction would almost certainly face scrutiny from Washington, which has historically viewed big railway mergers skeptically. Regulatory hurdles can be tough to overcome without a willing merger partner.

CSX is no stranger to sharp-elbowed M&A. In 1997, its merger agreement with Conrail was complicated when Norfolk Southern Corp.NSC +2.80% launched a hostile bid for Conrail, whose shareholders then voted down the CSX deal. The months-long saga ended with CSX and Norfolk Southern divvying up Conrails assets.



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Coincidence the stock has went up almost $3 today and still rising?

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My attitude is beginning to sour.

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997068_786639348066703_1417759663959752620_n.jpg?oh=72065d30353346eef84b79de5f7e0116&oe=54C32218&__gda__=1420730612_13db912eecd9d7462033d065961a4583



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FMB


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Troll wrote:

My attitude is beginning to sour.


 I've heard Hunter is a great guy....



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 Karma, I have a list of people you missed. 



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FMB wrote:
Troll wrote:

My attitude is beginning to sour.


 I've heard Hunter is a great guy....


 I have heard a member on this site is a huge fan of him.

 



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Force Majeure

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Hunter is the head of CP.

He is head Hunter.

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Troll wrote:

997068_786639348066703_1417759663959752620_n.jpg?oh=72065d30353346eef84b79de5f7e0116&oe=54C32218&__gda__=1420730612_13db912eecd9d7462033d065961a4583


 

 

BNSF was a Transcontinental until the steewpid bastages sold off the southeastern part of the FRISCO.



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Troll wrote:
FMB wrote:
Troll wrote:

My attitude is beginning to sour.


 I've heard Hunter is a great guy....


 I have heard a member on this site is a huge fan of him.

 


 But some think he has a bad attitude. 



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Chilean Night Skies

Uke


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Cy Valley wrote:
Troll wrote:
FMB wrote:
Troll wrote:

My attitude is beginning to sour.


 I've heard Hunter is a great guy....


 I have heard a member on this site is a huge fan of him.

 


 But some think he has a bad attitude. 


 Troll's attitude may become worse yet... As if that's possible! Ya think he can outdo...

                         black_lab_in_snow_by_silentsnowthatfalls-d35gnfu.jpg



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Hmm. That address doesnt look right.
It looks like the link pointing here was faulty.

Gah. Your tab just crashed.



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Troll's Big Book of Excuses might not work so well with BD's best bud, Hunter. Just saying. . .

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Cy Valley wrote:

Troll's Big Book of Excuses might not work so well with BD's best bud, Hunter. Just saying. . .


 Troll will mark off for Boxing Day.



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