CP-CSX; Again!

"Yäger" is hedging his bets.

The Wall Street Journal reports that CP has conducted further exploratory talks about a combination with CSX:

http://www.wsj.com/articles/canadian-pa ... 1456872863" onclick="window.open(this.href);return false;

Fair Use:

Canadian Pacific Railway Ltd. , which is pressing an unwanted takeover bid for Norfolk Southern Corp. , recently revived a $20 billion-plus effort to combine with CSX Corp. in the latest sign of its eagerness to bring consolidation to the industry.

Canadian Pacific made a fresh approach to CSX in January, according to people familiar with the matter and Canadian Pacific Chief Executive Hunter Harrison. Though the approach was rebuffed, Canadian Pacific remains interested, they said.

The western-focused railroad sees value in combining with Norfolk Southern or CSX, given the stronghold each has in the eastern U.S. Although Canadian Pacific remains committed to its about $30 billion bid to acquire Norfolk Southern, the Canadian company is determined to build a transnational railway and wants to keep its options open, Mr. Harrison said when reached for comment Tuesday.

“We’ve said all along that if we looked at the synergies between the two eastern carriers, right now both of them would work for us,” he said.

It isn’t clear why CSX said no. Shares of the Jacksonville, Fla.-based company, which is working with advisers, rose 2% to $24.64 while Canadian Pacific gained 1.5%, to $122.96, both in 4 p.m. trading on Tuesday. CSX rose 5% in late trading after The Wall Street Journal’s report of the approach

Time for "Yäger" and Billy to accept that "no one's interested" and that the regulatory environment, regardless of who raises their right come January 20, will not accept any such proposal. The reduction of coal traffic (I'm of the 'we have more of the stuff than the Middle East has oil; let's dig it" - and not rob the railroads of the one traffic that there, away from the waterway chain, is no reasonable and practical way to move the stuff). NS and CSX will eventually have to merge with someone, but it will not be with a Canadian road. I still think if CP wants to expand their US operations, look to the KCS, but be prepared to accept divestment from the Mexican properties.

The only way EHH will stop if the STB tells him NO from the get go,and there's a shareholder uprising at CP,forcing
this crazy attempt to pull off a HOSTILE TAKEOVER to stop.
It's time to send EHH to the "funny farm" retirement he's earning right now.

I still think Ackman is still trying the pump & dump strategy - threaten the hostile take overs - pump up the stock prices and sell his position in CP. He is already losing his asterisk on some of his other acquisitions.