Breaking...Canadian Pacific looking to buy Norfolk Southern

My thinking........................CP would need to get a heck of alot of Shareholders on their side! This is all talk on the part of CP.

 

70% of NS stock is held by 1,019 Institutional & Mutual Fund Owners. If CP plans to purchase more than 5% of Norfolk Southern stock CP is required by law to contact SEC. They are required to file a Schedule 13D with the SEC within 10 days of purchase. To my knowledge I have not seen CP file with the SEC yet. http://www.sec.gov/answers/sched13.htm

 

Regards,

Swafford

 

E. Hunter Harrison, an American, born in Memphis Tennessee, took over as the CEO of Canadian Pacific Railway's, on June 29, 2012; prior to that, he was the president of Canadian National.

 

Van Horne was an American, too.

 

 

Rick

The Canadian Southern name is owned by CSX and was used as recently as 1985 for a Windsor to Fort Erie short cut through Southern Ontario.

If successfull perhaps followed by UP and CSX; BNSF&CN?

All the Time?? It's gets pretty cold here in the winter. 

 

http://www.cpr.ca/en/about-cp/...rs/e-hunter-harrison

 

 

If I recall correctly, CN/BNSF was being considered several years ago.

 

Rusty

How about Norfolk Pacific 

If it were to happen, get used to seeing red and Canadian Pacific because that's the way CP does things.

 

Rusty

 I don't know...could happen but I personally think there's way to many loop holes to go thru with a merger between any Canadian railroad and and American class 1.

 

 I can see after this fails the American class 1's asking for another round of merger talks between them to keep from a hostile take over from the two major Canadian roads.

 

 The only plus I do see with a CP and NS merger are the fact I don't see many if not any paralleling lines that would effect employees or business.Might in fact generate new business on both sides of the border since either the NS or BP wouldn't have to work out deals with the other interchanging railroads here in the U.S. or Canada.

 

 No body at work when discussing this had anything positive to say though.

 

 Sometimes the saying " Less is more " is true,even in business or should I say railroads

I for one sure hope this never happens.  They're still on my list (along with the Dodgers for moving out of Brooklyn ) for dropping the D&H herald, which had been the longest continuously used logo in U.S. train history, and, of course, mothballing #2816. 

Thanks.

Ooh, those nasty big Canadians....I guess they could give you back McDonalds for a start.

 

Yeah, but I don't want to give up Tim Horton's coffee!  Very good!

Methinks that Grand Trunk Western had a big nasty maple leaf on their logo for a million years or so too

When news of a possible CSX-CP merger broke I read up on it. From what I could gather CP want to run their oil trains around the Chicago bottleneck. With CSX they would be able to accomplish this.

So I guess the same would hold true for NS.

BNSF tried to but Canadian National in the early 2000's and surface transportation board held it up until they finally just gave up. I think the days of rail mergers are over. Not enough competition..

E. Hunter Harrison is virulently anti-steam. You can kiss the 21st Century Steam Program goodbye if this sale comes to pass.

 

Here is an account of his remarks at a "town-hall" style meeting in Vancouver, BC, shortly after becoming the head of Canadian Pacific

 

"He opened it up to a Q and A near the end. I got up to speak at the microphone and asked him what his position was on the Heritage program citing the Christmas Train; RCP and the 2816. I mentioned how the UP has had a steam program for 50 years and the NS had one until Bob Claytor retired and passed away. Hunter cut in and said to me right away, "And Bob Claytor managed to turn over a steam engine while he was there". Hunter doesn't miss a thing. I should have known he would have known about that accident many years ago although I don't think it had anything to do with the steam engine he was driving. He then said "I hate steam engines". The audience chuckled when he said that. "They are expensive to run; the liability is too high and they serve no useful purpose" He never did touch on the RCP. He did say he will continue to run the Christmas train. He then said the company contributed over a million dollars to the relief fund in New York City after Hurricane Sandy and was quick to point out that the Norfolk Southern only donated $100,000 He seems to have an answer for everything."

 

Originally posted at Trains Magazine

Interesting article....................

 

http://finance.yahoo.com/news/...rfolk-211009739.html

 

Financial Position
Canadian Pacific exited third-quarter 2015 with cash of nearly $506 million and above $8 billion of debt. Such a weak cash position and high debt level will make it extremely difficult for Canadian Pacific to pursue the acquisition of Norfolk Southern, which has a market capital of nearly $26.5 billion.

Interesting video about the merger:

 

https://insider.thomsonreuters...ayerName=ReutersNews

Do you think the 611 can still continue to run like the 765 does if this sale goes through and 21at Century Steam Program is dropped?

No.

Why not?

Didn't you read the post above by Nick Chillianis concerning E. Hunter Harrison's policy concerning steam locomotives?

I did read it, but I figured the 611 could do trips like the 765 did to various train festivals and the CVSR back in pre-2012.

Wherever E. Hunter Harrison is "in charge" there has been no steam allowed,,,period,,,,no exceptions. 

By their very nature, company execs can be very opinionated.  I've never known modern-day execs and entrepreneurs that weren't to one degree or another.  On rare occasions, you'll find one who's really down to Earth and fun to chat with.  Unfortunately, many are much more opinionated than others.  It's the part of Corporate America I don't miss dealing with one iota.

 

I've always maintained that things like the UP and Norfolk Southern heritage projects and NS steam program are executive "pet projects" in one shape or form.  When you can get an executive to "think the right way" and drive the program, life is good.  And it's great PR for the railroad.  When the execs have a different opinion (as E. Hunter Harrison apparently has on this topic), it's like p!$$ing up a rope, talking to a brick wall, getting a donkey to move, getting pigs to fly... you can pick whatever analogy suits your fancy.

 

When executives try to pompously "get cute and take control" in public Q&A venues as you so outlined in your post, I just wish more folks were trained to turn the tables on them in public so they don't always get the last word in.    Speaking in public is a trained skill that's honed over the years... and most folks tend to shy away from it.

 

David

Wouldn't you love to see the return of the dirtiest locomotives ever seen?

https://c1.staticflickr.com/1/...40709012f_z.jpg?zz=1

 

Hey, I didn't get to ride behind 611 yet! Hunter will kill it all if he buys NS. I hope Moorman or whoever tries to block this. Of all the class 1's, the three C railroads hate steam. Look at what happened when Ross Rowland asked CSX to run 614 on their tracks for a luxury train. They said no. 765 couldn't run to the Nicholson Viaduct on public trips because CP still owned the tracks yet. Now NS has the tracks. BNSF has no official program but allows occasional steam excursions. UP has steam but it hasn't run in a while. I guess you won't see 614 or 2816 run in a long while. NS is the only hope now for mainline steam trips east of the Mississippi. Except for Reading and Northern 425, and Steamtown, TVRM they are the few longer steam rides in the east. NS has the ability to do 200 plus mile round trips that others cannot.

A potential merger of this size, with all the possible implications, and all some "railfans" can think about is a steam program...

 

 

Maybe that is because, unless they own stock in either railroad, the Steam programs are the only way that they will be affected, by a possible merger.

 

Doug

Years ago we used to have a joke about how to weather locomotives.

 

For UP

1. Remove from box.
2. Remove foam inserts.
3. Place on track.

 

SP

1. Remove from box.
2. Cover with dirt.
3. Coat with rust.
4. Peel paint.
5. Bury in back yard for three days.
6. Place on track.

Yes, steam programs are a luxury. They cost money, and give little profit in return if any. NS got back into steam because Wick Moorman is a railfan at heart and a steam fan. But Hunter Harrison is like CSX. No steam period, no exceptions. I guess that includes private groups as well as their own corporate program with 3716. So a CEO change or a merger can end an open door policy toward steam just like that.

I guess you could put Hunter Harrison, David Goode, and Michael Ward in the same boat. They don't like steam programs. Goode killed the old program at NS end of 1994 because he felt the way Harrison feels about steam. Too expensive, no useful purpose, ties up the railroad, etc.

Matt, SP had a head start with the gray. They looked nice when they left our re man facility in Mountain Top.

Don

Yes Matt, that is what I remember of the old Suffern Pacific. Even with them being the nastiest engines on the road John K still loved them, bless his heart.

O NO! Shades of Penn Central!!  I hope those Feds see it as a bad deal. And I am not buying any Red dang diesels.

See Chrysler and Cerberus...........agreed.

 

and they repeat their rambling on.....gets old pretty quick.-Jim

CP has made its pitch. It is important to remember CP and CN are Canadian only in name.

Interesting.

Don