• CANADIAN NATIONAL ENTERS BIDDING WAR WITH CANADIAN PACIFIC FOR KANSAS CITY SOUTHERN

  • For topics on Class I and II passenger and freight operations more general in nature and not specifically related to a specific railroad with its own forum.
For topics on Class I and II passenger and freight operations more general in nature and not specifically related to a specific railroad with its own forum.

Moderator: Jeff Smith

  • 178 posts
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 12
  by Jeff Smith
 
The mention of the former NAFTA above gave me a good idea for a name: USMCA Railways! :P
  by F74265A
 
justalurker66 wrote: Mon Mar 22, 2021 10:32 pm
F74265A wrote: Mon Mar 22, 2021 11:50 amWithout ns or csx, how does cp serve the northeast?
Why "without NS or CSX"? Do you believe the eastern class 1s will kick trains off of their rails out of spite over the merger?

I am not expecting huge changes in operations other than more trains running through Kansas City instead of being exchanged from CP to KCS at that point. CPKC will retain CP's trackage and haulage rights over the NS (and CSX) lines that they currently use. CP HQ will move from Minnesota to Kansas City. The combined company may save some money by being able to combine US operations. Maybe they will run a third Christmas Train.
I was responding to the assertion by Mr Gilbert that cp could provide single line svc from MX to the northeast USA. Nothing more implied
  by CN9634
 
I will say-- while certainly this is a large transaction, at the end of the day the combination of the two smallest Class Is still has the result of being the smallest Class I. Just something for everyone to remember, this I see it is more of a rebalancing act and I don't think will trigger any additional Class I mergers.
  by Ridgefielder
 
justalurker66 wrote: Mon Mar 22, 2021 4:34 pm
Gilbert B Norman wrote: Mon Mar 22, 2021 9:03 amMessrs. Lurker, TRAXX, et al, that name CPKC simply represents a "moniker" to use as the proposal moves forth, which as I noted immediately will "be a long, long time".
If CPKC was offered as the operating name of the "plain vanilla" independent voting trust I might agree with you.
But, clearly stated: "Following STB approval of the transaction" ... "The combined entity will be named Canadian Pacific Kansas City ("CPKC")."

Brand name ... I suppose they could use something simpler.
Not like there's not industry precedent:

-Minneapolis, St. Paul & Sault Ste. Marie = Soo Line
-Chicago, Milwaukee, St. Paul & Pacific = Milwaukee Road
-New York, Chicago & St. Louis = Nickel Plate Road
-New York, New Haven & Hartford = New Haven
-Cleveland, Cincinnati, Chicago & St. Louis = Big Four
-Chicago, South Shore & South Bend = South Shore Line
-Pittsburgh, Cincinnati, Chicago & St. Louis = Panhandle Route

etc....

Of course if it were 100 years ago they'd come up with a better name-- "Montreal, Vancouver, Chicago, Kansas City & Mexican Pacific" or some such thing.
  by justalurker66
 
BTW: CP is pushing forward the merger separate from the STB action. As soon as the merger is approved by stockholders, KCS will merge twice to become a wholly owned subsidiary of CP. The subsidiary will be operated separately by a trust until the STB approves the deal. CP and KCS have given themselves until December 21st to get stockholder approval and complete the merger process.

There are penalties of up to $700 million if either party terminates the merger agreement (depending on circumstance) and a penalty of $1 billion paid to KCS if the STB does not approve certain aspects of the agreement by December 21st, 2021, or there is a final block on the merger.

For those who like temporary names and legal mumbo jumbo: "Kansas City Southern" will merge with the "first merger sub" (Cygnus Merger Sub 1 Corporation) then change their name to "Kansas City Southern". Then they will immediately merge with the "second merger sub" (Cygnus Merger Sub 2 Corporation) and change their name to "Kansas City Southern". Merger Sub 2 is a wholly owned subsidiary of Merger Sub 1 which is a wholly owned subsidiary of Canadian Pacific Railway Limited. "Holdco" will hold the former assets of KCS until STB approval is received. KCS President David L. Starling will be the trustee.
  by Jeff Smith
 
justalurker66 wrote: Tue Mar 23, 2021 4:40 pm <SNIP>

For those who like temporary names and legal mumbo jumbo: "Kansas City Southern" will merge with the "first merger sub" (Cygnus Merger Sub 1 Corporation) then change their name to "Kansas City Southern". Then they will immediately merge with the "second merger sub" (Cygnus Merger Sub 2 Corporation) and change their name to "Kansas City Southern". Merger Sub 2 is a wholly owned subsidiary of Merger Sub 1 which is a wholly owned subsidiary of Canadian Pacific Railway Limited. "Holdco" will hold the former assets of KCS until STB approval is received. KCS President David L. Starling will be the trustee.
I've been through a few of these in the telecomm industry; it gives me a headache. You'd be surprised when I'm checking IP addresses on new registrations I see an IP registered to a long gone telecomm like MCI. With licensing, entities can live forever.
  by eolesen
 
Apparently, part of the deal is that CP will move its US HQ staff from the Twin Cities to KC. My radio station in MSP just highlighted the upcoming job losses...

Sent from my SM-G981U using Tapatalk

  by justalurker66
 
"Calgary will be the global headquarters of CPKC, and Kansas City, Mo. will be designated as the U.S. headquarters. The Mexico headquarters will remain in Mexico City and Monterrey. CP’s current U.S. headquarters in Minneapolis-St. Paul will remain an important base of operations."
Hopefully not a large job loss.
  by Ridgefielder
 
justalurker66 wrote: Wed Mar 24, 2021 6:27 pm "Calgary will be the global headquarters of CPKC, and Kansas City, Mo. will be designated as the U.S. headquarters. The Mexico headquarters will remain in Mexico City and Monterrey. CP’s current U.S. headquarters in Minneapolis-St. Paul will remain an important base of operations."
Hopefully not a large job loss.
Uneducated guess would be that the job losses will be Corporate front office -- Treasury/Accounting, Marketing, IT, that sort of stuff-- with anything touching actual rail operations safe.

How many Soo Line front office employees are there in Minneapolis these days, anyway? Guessing a lot fewer than when my old man was running messages between the Milwaukee Road depot on 3rd & Washington and the Soo Line building a lifetime ago...
  by JayBee
 
Ridgefielder wrote: Thu Mar 25, 2021 10:55 am
How many Soo Line front office employees are there in Minneapolis these days, anyway? Guessing a lot fewer than when my old man was running messages between the Milwaukee Road depot on 3rd & Washington and the Soo Line building a lifetime ago...
Well enough staff to handle regulatory filings with the FRA , STB, SEC and IRS. Plus enough people to manage payroll and some staff lawyers, probably some HR people too who are familiar with US regulations regarding hiring and firing.
  by justalurker66
 
JayBee wrote: Thu Mar 25, 2021 3:05 pm Well enough staff to handle regulatory filings with the FRA , STB, SEC and IRS. Plus enough people to manage payroll and some staff lawyers, probably some HR people too who are familiar with US regulations regarding hiring and firing.
Some of those people may get to go to KC HQ. It doesn't help the Minneapolis job market, but skilled people should be able to find a place to work.
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 12