Will CP + NS Happen?

[jmarley76]

I saw another article on the whole CP+NS take over. I have thought for a while that NS and CP would eventually merge, maybe not with CP folks driving, but hey times change. Just curious what others thought of this?

And here's the most recent article from yesterday:
http://www.benzinga.com/news/16/02/6673656/canadian-pacific-seeing-overwhelming-support-from-shippers-for-its-proposed-acqui

[bbussey]

The jury is still out.  CP is trying hard though, and the stock market seems to think it will happen.

[Ed Kapuscinski]

Mark my words,Mir it happens, it'll be one of the worst developments in rail transportation since the formation of Penn Central.

[Mark5]

Like Ed says ... bad idea.

[draskouasshat]

I'll put it to you this way, it will not happen, and if it's close to happening, a certain railroad will be the first single transcontinental railroad thanks to uncle Warren due to just plain buying NS. it's great when your parent company isn't a railroad, it allows you to do ask sorts of cool stuff!

[jmarley76]

I figured we might all be on the same page... I think ultimately the STB would agree with us too.

[Lenny53]

Hunter has back off somewhat after filing anti-competition complaint with DoJ.

[Spikre]

 
   if anything happens it will be NS Buying Out CP.
  NS has the bucks and backing.
  but they don't seem to think its a good idea at this time
  with CP being Over Valued.
   best that things stay as they are for now.
     Spikre
     

[Scottl]

I'll put it to you this way, it will not happen, and if it's close to happening, a certain railroad will be the first single transcontinental railroad thanks to uncle Warren due to just plain buying NS. it's great when your parent company isn't a railroad, it allows you to do ask sorts of cool stuff!

Meh, CN has been a Transcon for a long time.  They raised the pole with IC and now have port access on three coasts (four if you include the railhead in the Hay River. Northwest Territories that barges to the Arctic coast).

[Lenny53]

   if anything happens it will be NS Buying Out CP.
  NS has the bucks and backing.
  but they don't seem to think its a good idea at this time
  with CP being Over Valued.
   best that things stay as they are for now.
     Spikre
     

Record profits and a great operating ratio, overvalued?

[C855B]

Record profits and a great operating ratio...

The shenanigans they're pulling to do this aren't sustainable. This was SP's strategy back when I worked for them - stop investing in the plant and maintenance in general, cut support staff to barely functional, and run fewer but really long trains that accelerate the wear and tear on the plant. It looks great on the balance sheet long enough to court a buyer (or keep the shareholders happy), but in 5-7 years it all comes crashing down like a house of cards.

Pre-Staggers, SP was too big to be bought by someone else, so they usually saved themselves by selling off the vast chunks of California they owned*, starting the cycle over again. Does CP have this option?

* - This all came to a halt with the failed SPSF merger. The corporate merger was consummated and the holding company - basically Santa Fe - walked away with most of the r.e. assets. If it wasn't for Anschutz' big fiber project bailing them out, SP would have been absorbed by UP at least 10 years earlier.

[Lenny53]

Pre-Staggers, SP was too big to be bought by someone else, so they usually saved themselves by selling off the vast chunks of California they owned*, starting the cycle over again. Does CP have this option?

CP was given large land grants at the start (1860s) but I don't believe they holding much these days, most of it has been sold off AFAIK.

[Scottl]

CP still has a lands office although I suspect the original holdings are much reduced.

[C855B]

Wouldn't be surprised if CP once owned a lot of land, as that was how the governments "incentivized" transcon RR construction.

Most folks don't realize that in the fat years, SP was second only to the U.S. Government in total land holdings in California.

[draskouasshat]

Meh, CN has been a Transcon for a long time.  They raised the pole with IC and now have port access on three coasts (four if you include the railhead in the Hay River. Northwest Territories that barges to the Arctic coast).

We're not talking about those darned Canadians. First real American transcontinental railroad that runs solely on its own rails from coast to coast. BNSF & NS have had a solid run through agreement for a long while.

Also I'll just say I've heard some things......... lol