Canadian Pacific wants vote on Norfolk Southern deal

OMAHA, Neb. -- Canadian Pacific plans to ask Norfolk Southern shareholders whether they want the two railroads to pursue a merger.

See Full Article

Canadian Pacific said Tuesday that it plans to submit a shareholder resolution on a possible deal at Norfolk Southern's annual meeting this spring. But it doesn't plan to nominate its own slate of directors to press the issue.

Norfolk Southern officials didn't immediately respond Tuesday afternoon.

Norfolk Southern has sternly rejected all of Canadian Pacific's takeover offers even as they approached roughly $30 billion. Norfolk Southern has said the offers have been so "grossly inadequate" that there wasn't much point in discussing a possible deal.

Canadian Pacific has said combining its railroad with Norfolk Southern would create a more efficient operation that could haul more freight and grow profits faster than either railroad could alone. CP also predicts that it could cut roughly $1.8 billion in annual costs.

"Shareholders and analysts will be watching NS closely throughout 2016 and if they continue to underperform, the pressure to work with CP will only grow," said Harrison. "Our model performs in good times and bad, consistently driving shareholder value during the peaks and the valleys."

Norfolk Southern executives have said they believe the railroad will fare better if it remains independent. They have released their own plan to cut about $130 million in costs this year and more than $650 million in annual cost savings by 2020.

Canadian Pacific said it doesn't plan to ask Norfolk Southern shareholders to vote on its most-recent proposal. Instead, it will just ask them to support having the two railroads hold merger talks.

Even if the railroads agreed on a deal, the proposal would still have to clear major regulatory hurdles. The U.S. Surface Transportation Board hasn't approved any major rail mergers since it approved tough rules for them in 2001.

Norfolk Southern officials have said they don't believe regulators would approve such a merger, but Canadian Pacific officials remain optimistic a deal could be approved.

Shares of Norfolk Southern Corp., which is based in Norfolk, Virginia, rose $1.50, or 2.1 per cent, to $71.99 in afternoon trading Tuesday. Its shares are down 33 per cent in the past year.



Advertisements

Latest Economic News

  • Uber admits covering up 2016 hack that affected millions

    Economic CBC News
    Uber is coming clean about its coverup of a year-old hacking attack that stole personal information about more than 57 million of the beleaguered ride-hailing service's customers and drivers. The revelation Tuesday marks the latest stain on Uber's reputation. Source
  • Uber reveals coverup of hack affecting 57M riders worldwide

    Economic CTV News
    SAN FRANCISCO - Uber is coming clean about its coverup of a year-old hacking attack that stole personal information about more than 57 million of the beleaguered ride-hailing service's customers and drivers. The revelation Tuesday marks the latest stain on Uber's reputation. Source
  • Cheesecake Factory opens 1st Canadian location in Toronto

    Economic CTV News
    TORONTO - Sweet treat lovers near Toronto can now have their cheesecake and eat it too with the opening of Canada's first Cheesecake Factory location today. The U.S. restaurant chain, which serves dozens of different kinds of desserts, announced earlier this year that it would bring its restaurant to Toronto's Yorkdale Shopping Centre in the fall. Source
  • Meg Whitman steps down as HP Enterprise CEO

    Economic CBC News
    Meg Whitman is stepping down as the CEO of Hewlett Packard Enterprise. She'll be replaced by Antonio Neri, the company's president. Whitman became CEO of the former Hewlett-Packard Co. in 2011. That company split into two in 2015, with Whitman taking helm of HPE, which is focused on selling data-centre hardware and other commercial tech gear to other big organizations. Source
  • TransCanada says Keystone oil leak was a sudden, 'immediate' event

    Economic CTV News
    BRITTON, S.D. -- A TransCanada Corp. official says he believes an estimated 210,000-gallon oil leak discovered last week in South Dakota from the Keystone pipeline was a sudden and "immediate" event. The American News reports that Erik Tatarchuk, a TransCanada vice-president, said at a Marshall County Commission meeting Tuesday that it is unlikely oil leaked long enough to soak into the soil. Source
  • Canada 'prepared for the worst' amid squabbles over NAFTA, Freeland says

    Economic CBC News
    Despite making progress on "bread and butter" issues, Foreign Affairs Minister Chrystia Freeland said differences remain between Canada and the U.S. on a number of key chapters of the North American Free Trade Agreement (NAFTA). Speaking to reporters as the fifth round of negotiations concluded in Mexico City, the Toronto-area minister said "significant" sticking points include the U.S. Source
  • TTC CEO Andy Byford leaving Toronto to head up New York City Transit

    Economic CTV News
    TORONTO -- The chief executive officer of Toronto's transit agency is leaving his post to take a job as president and CEO of New York City Transit. Andy Byford -- who announced his resignation Tuesday, six years after joining the Toronto Transit Commission -- will remain on the job until Dec. Source
  • NAFTA: Deadlock on hard issues as round concludes

    Economic CTV News
    MEXICO CITY -- Another round of NAFTA talks wrapped up with all key issues still deadlocked Tuesday as negotiators prepared to leave Mexico City with a plethora of question marks lingering over the trade deal. Source
  • Shareholders urge TransCanada to back Keystone XL despite risk

    Economic CBC News
    TransCanada Corp. should push ahead with a $10-billion Keystone XL pipeline expansion after the state of Nebraska on Monday approved a route that would raise the cost of the controversial project, some shareholders said. The approval quashed the last regulatory hurdle for the nearly decade-old project, but the Nebraska Public Service Commission denied TransCanada's preferred route. Source
  • Federal agency dismisses complaint against Seabridge gold project

    Economic CTV News
    TORONTO -- Seabridge Gold Inc. (TSX:SEA) says a federal agency has dismissed a complaint by Alaskan conservationists against the company's massive KSM mining project in northern British Columbia. The Southeast Alaska Conservation Council had appealed to Canada's National Contact Point within Global Affairs Canada to look into whether the company had violated international guidelines on consultations with stakeholders, due diligence on environmental and human rights impacts, and disclosure of…