CP Rail CEO prepared to walk away if Norfolk Southern shareholders vote no

MONTREAL -- Canadian Pacific Railway CEO Hunter Harrison says he's prepared to walk away from a takeover bid for Norfolk Southern if the U.S.

See Full Article

railway's shareholders don't vote to urge its board to enter into negotiations.

"We're making preparations that, if we're not successful in entering a dialogue, that we're going to go back and focus on running a hell of a CP railroad and making it even more successful and having a good year and rewarding shareholders," Harrison said Wednesday during an investor conference webcast from Florida.

It's not the first time Harrison has suggested ending the three-month merger pursuit. A couple of weeks ago he mused about abandoning the bid and instead focusing on repurchasing CP shares, which have fallen 35 per cent in the last year.

The veteran railway executive said he's not sure if the odds are high that shareholders would agree to its request to vote yes at the next annual meeting, but he said CP Rail's (TSX:CP) options are narrowing.

"The list is becoming shorter and shorter to try to see this thing through and make it successful."

Harrison said some people misinterpreted prior comments about taking the proposal directly to shareholders as a proxy battle. He said such moves are costly and don't create the right environment.

He described CP's current call for a non-binding vote as reasonable because it merely urges the board to enter into talks rather than weigh in on the existing proposal.

Norfolk Southern has steadfastly refused to enter into negotiations on CP's US$30-billion offer. It responded Tuesday evening to the shareholder vote idea by saying it had already met with CP and that further discussions were not in the best interests of its shareholders unless its suitor offers "compelling value and addresses the regulatory issues inherent in its proposal."

Harrison said he was disappointed by the response, saying there had been only one two-hour meeting between himself and Norfolk's chairman.



Advertisements

Latest Economic News

  • Car rental companies agree to pay $1.25M penalty for advertising impossible discounts

    Economic CBC News
    Two of Canada's largest car rental companies have agreed to pay $1.25 million in penalties for falsely advertising discount prices that are essentially impossible to obtain. Canada's Competition Bureau has reached what it calls a "consent agreement" with Hertz and Dollar Thrifty whereby both companies will pay penalties totalling $1.25 million and "ensure their advertising complies with the law and implement new procedures aimed at preventing advertising issues in the future. Source
  • Guide to 'fake news' wins $30,000 National Business Book Award

    Economic CTV News
    TORONTO -- A timely guide to distinguishing fact from fiction in the era of "fake news" was announced Monday as the winner of the $30,000 National Business Book Award. Neuroscientist Daniel J. Levitin said he was prompted to write "A Field Guide to Lies: Critical Thinking in the Information Age" (Allen Lane Canada) as a response to the "Balkanization of the news over the last 15 years. Source
  • Montreal couple hid winning $55M lottery ticket in daughter's toy box

    Economic CTV News
    MONTREAL -- A Montreal couple who won $55 million in a lottery jackpot hid the winning ticket in their daughter's toy box over the weekend. Nathalie Langlais and Gilles Rosnen picked up their winnings at Loto-Quebec headquarters in Montreal on Monday, three days after the Lotto Max draw. Source
  • Capital markets not a place for 2nd chances, OSC lawyers tell Drabinsky hearing

    Economic CBC News
    Lawyers for Ontario's securities regulator said today in their closing statements that Garth Drabinsky, who defrauded investors of an estimated $500 million, should not be allowed to participate in the capital markets. Pamela Foy, senior litigation counsel with the Ontario Securities Commission, says the capital markets are not the place for second chances and the commission cannot allow Drabinsky to be in a position where he could do more damage. Source
  • Luxury shoe brand Jimmy Choo goes up for sale

    Economic CTV News
    LONDON -- Shares in Jimmy Choo have leapt 11 per cent after its board put the luxury shoe brand up for sale. The gains bring the market value of the firm that began in east London to over 700 million pounds ($896 million). Source
  • Hertz and Thrifty to pay $1.25M fine following probe into their advertising

    Economic CTV News
    OTTAWA - Car rental companies Hertz Canada Ltd. and Dollar Thrifty Automotive Group Canada Inc. have agreed to pay a total of $1.25 million in penalties following an investigation into their advertising by the federal Competition Bureau. Source
  • U.S. Supreme Court rejects GM appeal to block ignition switch lawsuits

    Economic CBC News
    The United States Supreme Court has turned away an appeal from General Motors Co. seeking to block dozens of lawsuits over faulty ignition switches that could expose the company to billions of dollars in additional claims. Source
  • Qatar Airways sees 'manageable' decline in flights to U.S.

    Economic CTV News
    DUBAI, United Arab Emirates -- The CEO of one of the Middle East's largest carriers said Monday passenger numbers to the United States have dipped slightly over fears by some Muslim passengers that their visas may be rejected upon arrival, but expressed confidence in President Donald Trump as a "very good businessman. Source
  • Extra EI help to hard-hit regions tops $1 billion, surpassing budget estimates

    Economic CTV News
    OTTAWA -- The federal government says it has paid out more than $1 billion in extra employment insurance benefits to out-of-work Canadians in the hardest-hit economic regions of the country, blowing past what the Liberals estimated the program would cost. Source
  • Home Capital says founder Gerald Soloway to leave board, CFO to change role

    Economic CBC News
    Home Capital Group Inc. said Monday that two people named in an Ontario Securities Commission action against the company will be moving out of their roles. The embattled mortgage lender said chief financial officer Robert Morton will shift out of that role after the company files its first-quarter results. Source