Possible CP-NS merger and Amtrak

[Hal]

Since the offer price was $20 below the 52 week high, I expect the due diligence at NSC would go pretty quick.

That first offer was likely an opening gambit. Testing the waters.

 

[Acela150]

An internal e-mail was put out at NS yesterday. It stated that the "Board" would look at the offer an consider it. IMO it seemed like there is no interest in this offer.

Don't read to much into that. They have a duty to their investors to do due diligence on any offer.

Sent from my iPad using Tapatalk

That's pretty much what it was saying.

 

[lstone19]

Lack of a physical connection is a barrier to a *merger*, because Chicago traffic is in a *traffic jam*. Sure, you could send CP traffic to NS via a dozen other roads in Chicago. And be low priority traffic. And gain absolutely nothing by it, relative to what you have now when CP and NS are separate companies, and already send traffic to each other.

In order to gain something by the merger, you actually want a direct connection between the two railroads.

It's not a fully owned connection but as I understand it, currently IHB is owned 49% by CP, 25.5% by NS, and 25.5% CSX so a combined NS-CP would own 74.5% of the IHB. Also, the west end of the IHB leads directly into CP's Bensenville Yard. Despite running side-by-side with Metra for a short distance, they are completely separate. You can't even get from the Metra main tracks along Bensenville Yard to the IHB - the IHB is only accessible from the yard leads.

 

[jis]

The Justice department has come out against the CP trust proposal in no uncertain terms. See:

http://trn.trains.com/news/news-wire/2016/04/08-justice-department

 

[sechs]

CP Has apparently given up

 

[west point]

now once the NS annual meeting is over it can back to the business of running a 1st class RR.

 

[Acela150]

now once the NS annual meeting is over it can back to the business of running a 1st class RR.

First Class my rear end.. A bunch of idiots run the show.. They over hired at many locations including my terminal. They hired 40 guys.. All of them are out of work except 5 that got called back from Furlough this week. Many Conductor Trainees were fired cause they had no seniority or union to back them up.

They hired thousands of people based on the "projected work they would get".. So I stick with my opinion that a bunch of idiots run the show..

Meanwhile the new CEO Jim Squires gave himself a pay raise pretty much..