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Burning Journal -> NS -> Canadian Pacific to revise terms of bid for Norfolk Southern -WSJ
Post Info TOPIC: Canadian Pacific to revise terms of bid for Norfolk Southern -WSJ
Calvin


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Canadian Pacific to revise terms of bid for Norfolk Southern -WSJ
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Canadian Pacific to revise terms of bid for Norfolk Southern -WSJ
Dec 7 (Reuters) - Canadian Pacific Railway Ltd (CP Rail) is expected to revise deal terms for its acquisition of Norfolk Southern, to allay fears of a prolonged regulatory review and put cash earlier in shareholders' hands, the Wall Street Journal reported, citing people familiar with the matter.

In its revised bid, CP Rail is expected to offer $32.86 in cash and .451 of a share in a new holding company that would run the two railways, as against its previously rebuffed offer of $46.72 and .348 shares for each Norfolk share, the WSJ reported.

Shareholders could be paid as soon as May, provided the regulators approve a temporary trust structure that would keep the two companies independent as the regulatory process, which could take up to two years, gets underway, the Journal said.

JPMorgan Chase, CP Rail's banker, has committed $10 billion to finance the merger, the paper said

CP Rail, Norfolk Southern and JPMorgan could not be immediately reached for comment outside regular business hours.

Based on the findings of two former Surface Transportation Board (ST) commissioners it retained, Norfolk released a report on Monday night saying the merger was "highly unlikely to be approved by the ST".

Norfolk added that the STB would not approve of the merger or a voting trust structure as "neither would be in the public interest" and that its strategic plan to take the company forward is superior to CP Rail's "grossly inadequate and high-risk proposal".

Last week, Norfolk rejected CP Rail's $28.4 billion takeover offer saying the bid would face regulatory hurdles "at any offer price".

Responding to the rejection, CP Rail said it would hold a conference call on Dec. 8 to discuss "clarity, context and detail" of its offer and "correct every inaccuracy".

Activist investor William Ackman, who holds a 9.1 percent stake in CP Rail and is a big advocate of consolidation in the North American railway sector, will join the company's Chief Executive Hunter Harrison in the conference call.



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Calvin


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Norfolk Southern Bucks Revised Offer From Canadian Pacific

New offer designed to allay investor concerns about regulatory review

By
Jacquie McNish And           
  • Updated Dec. 8, 2015 8:02 a.m. ET

Norfolk Southern Corp. bucked Canadian Pacific Railway Ltd.s revised merger offer on Tuesday, calling it grossly inadequate and not in the best interest of the company or its shareholders.

The move throws cold water on Canadian Pacifics new proposal, which it had announced



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Uke


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ll ya really need ta know about the big deal, follow Snippy's hyper-link at the chat! (or here)

http://www.cpr.ca/en/investors-site/Documents/cp-proposal-december-8.pdf



-- Edited by Uke on Tuesday 8th of December 2015 10:00:48 AM

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1818568?AWSAccessKeyId=1XXJBWHKN0QBQS6TGPG2&Expires=1450310400&Signature=FOwn%2B6yK9xAflR%2B%2F4gi0FQLYzz8%3D



-- Edited by Troll on Wednesday 9th of December 2015 08:36:02 AM

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Uke


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When the fuck is that Hillbilly Harrison gonna explain WHY he (CP) wants LAMCO so bad? He's never addressed the most important issue of all. What the hell's he hiding?

The Salt Lake Tribune
 

Canadian Pacific sweetens offer for railroad

By JOSH FUNK The Associated Press
First Published 7 hours ago      Updated 7 hours ago

Omaha Canadian Pacific is increasing its offer to buy Norfolk Southern railroad by adding an additional payment that would vary depending on the stock price of the new company.

Canadian Pacific CEO Hunter Harrison said Wednesday that his company remains committed to the deal despite Norfolk Southern's opposition. He wants shareholders of the Norfolk, Virginia, railroad to decide whether to pursue it.

Canadian Pacific says its new offer could add as much as $3.4 billion to its previous offer that it estimated was worth between $37 billion and $42 billion. That value is based on the projected value of stock in a new company that would own both railroads.

 

 
 
Norfolk Southern says the previous offer was worth roughly $27 billion based on current share prices.

In the latest offer, Canadian Pacific is offering to pay Norfolk Southern investors up to roughly $11.305 per share more if shares of the combined company are worth less than $175 in October 2017.

Norfolk Southern didn't have an immediate comment.

 
 
 
 
 


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Omaha Canadian Pacific is increasing its offer to buy Norfolk Southern railroad by adding an additional payment that would vary depending on the stock price of the new company

 

I knew it....Hoghead Bob is the Sith.



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Calvin


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Railroads been bein taken over for a looooooooooooong time...

Railroad-magazine.jpg



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