NS to be Taken Over by CP?

[CSX_CO]

STB only steps in if they formally merge. At this point only the SEC could stop what Harrison is doing, but they're not buying enough shares to trigger their scrutiny. So no one is going to "step in" to save NS.

Sounds like NS is already starting to cut internally as a response. We'll see if it's enough to ward off Harrison (it won't be).

[atrainguy60]

Latest news from Harrison:

http://trn.trains.com/news/news-wire/20 ... ison-on-tv

He says that NS needs to make a move soon or they will be facing a proxy battle. He also say that the next 10 days will bring a lot of action, and that if NS is trying to wait this out, "they will be waiting a long time." Harrison also says that BNSF's comments last week were "irresponsible" and "Matt is just trying to muddy the waters."

This is getting really interesting. I look forward to seeing any responses that may come from BNSF.

[M.D.Bentley]

"Matt is just trying to muddy the waters"
I didn't know I had that much influence
I can see a BNSF over CP merger, if anything at all.

[NSSD70ACe]

Attempt #3

According to Trains Magazine, CP just made it's 3rd offer less than an hour ago. No details yet.

http://trn.trains.com/news/news-wire/20 ... er-revised

[M.D.Bentley]

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[M.D.Bentley]

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[CSX_CO]

What's a beaverhorse?

[railohio]

I think it comes from Paper Railroads.

[atrainguy60]

Aaaaannnnnddddd again:

http://www.progressiverailroading.com/n ... cks--46812

CP has been rejected. Now that they've been rejected three times in a row - does that mean CP will change their game plan. Or will they back off now?

[justin_gram]

Norfolk Southern Tells Canadian Pacific To 'Go Pound Sand'

[atrainguy60]

http://mhlnews.com/transportation-distr ... d-rejected

From a few days ago - just a general article about the whole deal. However I thought this was an interesting line from CP:

Ackman has said that if the NS merger ultimately fails, CP will possibly pursue acquiring other railroads, but didn’t delineate which ones.

Maybe they'll approach KCS. They've already gone after CSX and NS. Please correct me if I'm wrong but UP seems opposed to mergers and CN would mostly create a monopoly in Canada right? BNSF seems interested in a competitive way.

[NSSD70ACe]

STB to CP: You can't do that.

A major part of CP's argument to buy out NS has been declared illegal by the STB.

http://m.mhlnews.com/transportation-dis ... tion-grows

[CSX_CO]

STB to CP: You can't do that.

A major part of CP's argument to buy out NS has been declared illegal by the STB.

http://m.mhlnews.com/transportation-dis ... tion-grows

Where in there does it say Harrison assuming control of NS is "illegal". All it says is they'd be more cautious approving such an arrangement.

[bdconrail29]

There is no mention of anything illegal. But, what's the fun in that? Might as well make stuff up to make it more interesting.

[NSSD70ACe]

In its response to a congressional inquiry mailed to it as part of a flurry of correspondence in opposition to the CP-NS merger plan, the board seriously undermined one of the main arguments made by CP’s top management—that it could gain STB approval of a voting trust in which current CP CEO Hunter Harrison would run NS while having no involvement in the direct management of CP for the period when the STB considers approving the overall merger, which could take up to two years.

(original link I posted)

Some of the concerns raised by NS were echoed in the correspondence. Some argued that CP’s plan to create a voting trust while the merger works its way through the regulatory review process is illegal

(akronrrclub.wordpress.com, posted from a news article that isn't linked on the page) (https://akronrrclub.wordpress.com/tag/cp-ns-merger/)

STB didn't say the merger is illegal, but the whole "CP controls NS via voting trust until approval" is, hence undermining a major argument in CP's favor.

EDIT: Edited to correct citations and give exact link to Akron RR Club posts.

[CSX_CO]

Uh huh.

Ackman and Harrison aren't done. All these "comments" by the other railroads have opened up the possibility of anti-trust lawsuits on behalf of CP as it appears the other railroads are in collusion to block the merger. That's a big no-no.

[NSSD70ACe]

Uh huh.

Ackman and Harrison aren't done. All these "comments" by the other railroads have opened up the possibility of anti-trust lawsuits on behalf of CP as it appears the other railroads are in collusion to block the merger. That's a big no-no.

On the surface, it looks like CP is just throwing a temper tantrum. But look deeper inside it and I totally agree. The fact that most of the other roads are reaching out to the STB to shut this down is suspicious at the best and it might do more harm than good in the long run.

[Saturnalia]

Has anyone ever considered that NS is in bad shape operationally and needs to be pruned? Harrison is spot-on with operations: they need fewer, more efficient yards, and to retool coal routes to fit with demand. They should be able to do more with fewer people.

Let's be real. Foamers don't like Harrison because he's not Wick Moorman. Harrison doesn't parade tea kettles or keep heritage schemes.

Harrison is a genius. He knows how to run a railroad at low-cost while not killing it - efficiency is everything. TBH the current operating schemes of NS and especially CSX are trying to run a low-cost railroad - but they're failing by cutting without creating new efficiency.

We all bemoan bad operations and short-sighted looks at Wall St that often create it. But Harrison knows how to balance long-term thinking with short-term operational moves and continually make good returns to investors. And that is why he's the greatest CEO in the railroad world right now, like it or not.

Now whether or not a CP-NS merger makes sense is a different deal altogether. Discussing the merger only in terms of harrison, Harrison, HARRISON is going nowhere and ignores the HUGE discussions on shippers, competition and collective health of the railroad industry.

[CSX_CO]

Has anyone ever considered that NS is in bad shape operationally and needs to be pruned? Harrison is spot-on with operations: they need fewer, more efficient yards, and to retool coal routes to fit with demand. They should be able to do more with fewer people.

Let's be real. Foamers don't like Harrison because he's not Wick Moorman. Harrison doesn't parade tea kettles or keep heritage schemes.

Harrison is a genius. He knows how to run a railroad at low-cost while not killing it - efficiency is everything. TBH the current operating schemes of NS and especially CSX are trying to run a low-cost railroad - but they're failing by cutting without creating new efficiency.

We all bemoan bad operations and short-sighted looks at Wall St that often create it. But Harrison knows how to balance long-term thinking with short-term operational moves and continually make good returns to investors. And that is why he's the greatest CEO in the railroad world right now, like it or not.

Yeah, Harrison isn't a genius, just thinks he is. Ackman is more than happy to ride that horse, and inflate that ego. He came up in the 70's and 80's when you could cut to profits, and technology provided the efficiency. Efficiency is doing the same, or more, with less. Productivity is the ability to get it all done. You're also confusing efficiency with productivity. They aren't the same. Cutting yards, lines, jobs, trains, can create efficiency. But if you can't get it all done with productivity in the new "efficiency" it doesn't work long term.

He doesn't look at long term viability. He's not in one place for the long term. His track record speaks for that. BN, ICG, CN, now CP (I think I have his track record correct without looking). He is good at short term solutions to "right the ship" but doesn't necessarily fix the leaks. One only need to look at the railroads he was at, and the positive long term capacity cuts he made.

Also, Harrison has a long history of the numbers not adding up after he leaves. He knows how to cook the metrics to make it look really good. Everyone in the industry know his numbers aren't right, but anyone at CN (or CP) who value their jobs aren't letting that genie out of the bottle.

In so far as doing more with less people, how much further can you cut manpower? Down from 5 man crews to 2, and sometimes 1. The cost of labor is a fraction of what it once was. That ship has sailed, so IMHO further cuts to manpower has a negative affect anymore.

[SD80MAC]

Hunter knows how to improve the bottom line and maximize profits, in the short term. His practices are not sustainable for the long term. The CN is still recovering from everything he did.