Supporters of CP Rail merger with Norfolk Southern express support to regulator

MONTREAL -- The regulator that decides the fate of railway mergers in the United States is receiving letters of support for Canadian Pacific Railway's unsolicited proposal to buy Norfolk Southern.

See Full Article

Since early January, the Surface Transportation Board has received 16 letters of support from companies based in Canada and the U.S., according to its website.

It marks a reversal from December when only opposition and concerns were raised in letters from politicians, unions and some customers, even though the agency has not been presented with a formal offer to consider.

Each of the letters supporting CP's (TSX:CP) proposal are virtually identical.

"CP's proposal is a timely one that introduces a number of positive, future-focused ideas to vastly improve North America's transportation network," said letters sent from companies including Calgary Metal Recycling, Tampa's Trammo and Windstar LGP Inc.

They repeat the advantages that have been espoused by CP Rail since it first submitted an unsolicited offer that Virginia-based Norfolk Southern has repeatedly rejected.

Norfolk Southern declined to comment on the letters while its Calgary-based rival didn't immediately respond to questions, including whether it had a role in the letter-writing campaign.

In response to letters of opposition that raised similar concerns espoused by Norfok, the STB said any merger proposal would be subject to a "rigorous administrative review."

Chairman Daniel Elliott and two other board members said the merger rules adopted in 2001 require applicants to show that a merger is in the public interest by demonstrating benefits such as improved service and competition outweigh potential negative effects like service disruptions.

Norfolk Southern has rejected CP's offer valued at about US$30 billion, arguing it will do better if it remains independent.

Canadian Pacific has argued that combining the two companies to create North America's largest railway would improve performance and generate about US$1.8 billion in annual costs savings.



Advertisements

Latest Economic News

  • Yellen to step down from Federal Reserve board

    Economic CBC News
    Janet Yellen is submitting her resignation from the Federal Reserve board to President Donald Trump, announcing that she will leave the board when her successor Jerome Powell is sworn in as Fed chairman. Yellen says that she will "do my utmost" to make sure that there is a smooth transition to Powell, who was tapped by Trump on Nov. Source
  • Loblaws' latest consumer loyalty pitch: $9.99 a month for premium perks

    Economic CBC News
    Loblaws is launching a fee-based subscription program targeting its existing loyalty program members that sweetens the pot for them in terms of rewards, in exchange for an ongoing fee. For $9.99 a month — or $99 a year — a new program the retailer is launching today called PC Insiders will give people who sign up discounts and reward points across many of the chain's stores, both in-person and online. Source
  • Uber Canada's service animal policy criticized by some disability rights advocates

    Economic CTV News
    TORONTO -- Uber Canada has launched a new policy on how its drivers deal with customers who have service animals, but some disability rights advocates say exemptions built into the rules could still lead to discrimination. Source
  • Credit card manipulator reveals point-hogging strategy

    Economic CTV News
    Bank tellers may have rolled their eyes when Avery Campbell started depositing grocery bags full of collectable coins into his account. But he had the last laugh over champagne and caviar while flying first-class to five-star resorts. Source
  • N.B. inks deal with company to provide marijuana for recreational users

    Economic CTV News
    ATHOLVILLE, N.B. -- New Brunswick says it has become the first province to fully secure its supply of recreational marijuana. It announced a memorandum of understanding with Zenabis to provide four million grams of cannabis and derivative products with a retail value of about $40 million. Source
  • Alibaba takes $2.9 billion stake in food retailer

    Economic CTV News
    Alibaba said on Monday it would take a major stake in one of China's top food sellers for US$2.9 billion as the e-commerce giant expands further into the retail world. China's largest e-commerce platform has invested heavily in recent years to connect its online and offline portfolio of businesses, taking stakes in several Chinese grocers, shopping malls, and department stores. Source
  • Nebraska to finally decide on Keystone XL today, the last major hurdle

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source
  • Nebraska approves TransCanada Corp.'s Keystone XL pipeline

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source
  • Nebraska approves 'alternative route' for TransCanada Corp.'s Keystone XL pipeline

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source
  • Nebraska to finally decide on Keystone XL Monday, the last major hurdle

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source