Proposed Norfolk Southern NS Canadian Pacific CP Acq/Merger

[justalurker66]

So if EHH doesn't get his way it was a conspiracy against him?

Other than Zeke, does anyone think NS is so stupid that they would refuse to make a move that is good for their company?
(I know Zeke thinks NS is stupid ... so this question is addressed to anyone else.)

Why is it so easy to picture CP as a three year old demanding a cookie and screaming that life isn't fair if they don't get one?

[mtuandrew]

Why is it so easy to picture CP as a three year old demanding a cookie and screaming that life isn't fair if they don't get one?

Demanding someone else's cookie, no less.

[Zeke]

March 9 EHH spoke at a JP Morgan Transportation conference handed an olive branch to NS. FWIW Http://cpconsolidation.com" onclick="window.open(this.href);return false; click on News and Media.

Some light at the end of the tunnel ? NS press release dated 02/29/2016, " In the event the CP addresses Norfolk Southern concerns by receiving a declaratory order from the STB ( CP petitioned the STB for a declaratory order on March 2 ) validating it's proposed voting trust structure and indicates a willingness to meaningfully increase the value represented by its proposal, Norfolk Southern would be willing to enter into good faith discussion with CP regarding the potential combination of the two companies."

Meaningfully increase the value...the fly in the ointment ?

[justalurker66]

Meaningfully increase the value...the fly in the ointment ?

NS is worth more than CP is offering. What they are saying is make a reasonable offer and NS will consider it.
If CP can't make a reasonable offer why waste time considering it?

[Zeke]

NS strategy, if one can call it a strategy, is ask an exorbitant price and if they can get it ( not likely ) can all bail out rich taking the money and run. Considering their fundamental cash cow coal is on the way out, likely for good, Ackman is offering a fair price for what will be left of NS several years down the road. Another indicator the genteel white shoe senior management is sorely in need of a railroader to save the road and increase shareholder value. Shareholders....you know the folks who actually own the place !

[justalurker66]

CP's job is to pay as little as possible. Anything more and they are not doing their jobs.
NS's job is to get as much as possible. Anything less and they are not doing their jobs.

[Zeke]

Lurker old man I agree to a point but with coal on the way out for good, present day sale price must reflect this simple fact, that down the road, this most lucrative revenue stream is a goner. EHH hinted at spinning what's left of the NS coal business off to a Conrail shared assets type arrangement partnering with CSX and their coal operations, I assume to keep the coal unit off the CP+NS balance sheets.

[Zeke]

It's do or die for CP now that the letters are in the mail exhorting NS shareholders to vote for the non binding resolution to engage CP in merger talks. The annual meeting is set for May 12 at Williamsburg, Virginia and should be quite interesting. Rumor mill says the three biggest institutional investors, Capitol Research Global investors group which holds 9 % of NS, Vanguard group holding 6.3 % and State Street Corp 4 % are in the Ackman camp looking for better ROI and as Wild Bill has recently stated," We are looking at the same movie we have seen at IC, CN and CP." EHH philosophically stated," The world won't end if we get turned down. We have a great little railroad up north we will go back and make it better."

[Zeke]

In the event CP prevails, as insiders give a fair chance of it coming off, what would CP+NS look like down the road and what did EHH do at CP to transform it into a precision scheduled railroad ? A Fred Frailey interview of a ex Canadian Pacific vice president.


Could Hunter bring efficiencies to NS ? " Absolutely. He excels in yards. He is good at wringing productivity out of them and NS is cluttered with yards. NS has not had good Terminal operations people in a long time and it shows. The customers at CP loved Hunter. He always delivered on what he said he would do. Maybe they wanted 7 a.m. deliveries. Hunter would say no that wont work but 9 a.m. will, and delivered on time every day. Everyone thought he would run off intermodal but he actually grew the business. Hunter is very focused. He will not starve the network for capital. If it is a main corridor and needs investment he provides it. Locomotives stay in tip top condition and he keeps them rolling."

"Hunter will simplify the NS network and make it much more efficient without driving traffic off except that which requires four or five handlings and is cost in-efficient. NS will look very different as he will likely spin off everything that doesn't fit into a core network. So do I think he will succeed at NS? Oh goodness yes." May 12 the day of reckoning !

[newpylong]

Notice no one is responding here anymore?

No one wants this but those that MIGHT benefit financially.

For every pro merger quote you post there are 5 more news articles against it - now including the US House Transportation Chief speaking against it.

Quit drinking the kool aid, it's never going to happen. I look forward to voting no on my Proxy.

[Zeke]

No I didn't notice no one was posting here I figured it would be quiet until May 12. I look forward to canceling out your vote LOL.

[justalurker66]

“Never argue with a fool, onlookers may not be able to tell the difference.”
― Mark Twain


People trying to make a buck is what CP is looking for. Not people making the best decision for the long term success of NS. But people willing to sell out.
I'd rather not watch CP run NS into the ground. We'll find out if they have a shot to get that chance in May.

[Zeke]

And long term success is measured by an entrenched and underperforming management team with a dead flat operating ratio for the past 10 years and the worst labor relations on the planet ? Just admit NS is like a sports team to you fellows and you cant stand to see it shaken up.

"In the land of the blind the one eyed man is king."

[Jeff Smith]

Anyone want to throw in a "nanny nanny boo boo?"

[F-line to Dudley via Park]

The business and politics of Class I competition is like rooting for laundry? That's a new one.