Canadian Pacific to present revised, enhanced offer for Norfolk Southern

Until CP pulls up with a trainload of money, a boxcar full of doughnuts and NS says YES, none of this means much of anything, especially since were really have no say in the matter.

Rusty

I would be very surprised if the Surface Transportation Board approves this unsolicited merger. All Hunter Harrison and his back pocket hedge fund partners want to do to NS is suck all the money out, then dump the skeleton.

The trump card held by CP at this point may be to conduct a proxy fight to seize control of NS' board.  The NS board, for some reason, does not have staggered terms like most companies have.  This opening could be exploited by CP to load the NS board with directors more amenable to the CP proposal.  Once the new directors are seated, there would be nothing to prevent them from naming Hunter the new CEO.  And, under this scenario, as long as his ties with CP are severed before he joins NS, the STB won't have a say.

Curt

Hunter Harrison needs to keep his royal canadian "A" in Canada! 

Hunter is supposed to be working on solving the delays in Chicago.

Andrew

Swafford posted:

Hunter Harrison needs to keep his royal canadian "A" in Canada! 

Yes!!

falconservice posted:

Hunter is supposed to be working on solving the delays in Chicago.

Andrew

I would think that the "delays in Chicago" would be the least of his worries with the entire CP system.

SWAFFORD  No need to use the "A" word here. We Canadian are very friendly people. You said this deal would never happen any ways .  

SWAFFORD FYI Hunter Harrison was born in Memphis Tennessee USA. 

Harrison isn't a Canadian... He's an  American from Tennessee.   

To All Canadians, I apologize! This Harrison guy I just do not like.

 A merger with NS at all costs is not a good idea. I wonder what the CP stockholders think of this merger that will double their debt. Not a good idea.

Regards,

Swafford

Swafford posted:

 

 A merger with NS at all costs is not a good idea. I wonder what the CP stockholders think of this merger that will double their debt. Not a good idea.

Just my opinion but, I don't think that the CP stockholders could give crap, as long as they get the dividend, and the value of their stock continues to go up. Besides, isn't some big "hedge fund" pushing Mr. Harrison to do this "deal"?

Regards,

Swafford

 

Hot Water posted:

Swafford posted:

 

 A merger with NS at all costs is not a good idea. I wonder what the CP stockholders think of this merger that will double their debt. Not a good idea.

Just my opinion but, I don't think that the CP stockholders could give crap, as long as they get the dividend, and the value of their stock continues to go up. Besides, isn't some big "hedge fund" pushing Mr. Harrison to do this "deal"?

Regards,

Swafford

 

 

I believe the big hedge fund manager is the same one that almost put J.C. Penney out of business a couple of years ago by trying to turn it into Apple. Not sure they have yet recovered? I think FEC FAN's description above, of the future plans for NS is just about right.

Time will tell what occurs here, personally I think CP needs to worry about CP and not about merging with NS.

Chris' comment prompts a thought:  just as Putin has jumped into Syria as perhaps a way to take Russian citizen's eyes off growing impoverishment with the halving + of oil prices, so maybe CP running after NS is a diversionary tactic for CP's stock decline ($200 on 05-01-15, to current 127.10).

Swafford I was having fun with you, no harm done. Have a Merry Christmas and a Happy New Year.

Mark

There's a interesting article in Trains today with a map of what the combined system would look like.   Not that I'm for this merger but the combined system looks like it would fit better than I thought.

Swafford posted:

Canadian Pacific is revising its offer for Norfolk Southern and explaining the details during a news conference this morning.  

As you all know, NS executives and the U.S. railroad's board of directors have already rejected two prior bids.

Regards, 

Swafford

Well maybe if they throw in that the CP will run the "Christmas Train" over the entire NS system, they'll go for it then. 

I thought Hunter at first wanted CSX.  What happened?