D&H South End Sale to NS - APPROVED 5/15/15

SecaucusJunction wrote:NS is raising their prices all over. Is this because they want less business?

http://www.nscorp.com/content/nscorp/en ... eases.html" onclick="window.open(this.href);return false;

How is this relevant to the sale of the D&H?

It's not, it's trolling.

The Canadian Pacific Railway recently approached CSX, the big Florida-based rail line, about a merger that would create a company worth more than $60 billion, people briefed on the matter said on Sunday.

While the two companies have begun to discuss the possibility of a transaction, CSX was cool to the idea, and it is too early to tell whether they will pursue one, these people said.

If completed, a deal would unite two of the biggest railroad operators at a time when rail traffic in North America is soaring because of the energy boom, snarling Amtrak traffic and tying up other freight.
http://dealbook.nytimes.com/2014/10/12/ ... blogs&_r=1" onclick="window.open(this.href);return false;

South end would become redundant then and surely be sold to NS or some other operator. Perhaps the entire D&H, for that matter. Would likely mean changes for the CN run-throughs on the CSX line north too.

CSX has already nixed the deal:

CSX, the biggest railroad in the eastern U.S., rejected an offer by Canadian Pacific to combine into a transcontinental railroad, people familiar with the matter have said. Calgary-based Canadian Pacific could make another attempt to woo CSX or seek a new target, said one of the people, who asked not to be identified because the talks are private.

Source: http://www.bloomberg.com/news/2014-10-1 ... grain.html" onclick="window.open(this.href);return false;

Matt Langworthy wrote:CSX has already nixed the deal:

Well, they just nixed the deal at the current price offered. The beginning of a game...
In any case, with all the major RR's having regular meltdowns it seems, a big merger is not going to go over well with the regulators these days...
JS

Matt Langworthy wrote:CSX has already nixed the deal:

CSX, the biggest railroad in the eastern U.S., rejected an offer by Canadian Pacific to combine into a transcontinental railroad, people familiar with the matter have said. Calgary-based Canadian Pacific could make another attempt to woo CSX or seek a new target, said one of the people, who asked not to be identified because the talks are private.

Source: http://www.bloomberg.com/news/2014-10-1 ... grain.html" onclick="window.open(this.href);return false;

Yes, but it will come down to the CSX shareholders who will be offered a nice premium on their stock price.

bostontrainguy wrote:Yes, but it will come down to the CSX shareholders who will be offered a nice premium on their stock price.

Nice premium? CP's offer was apparently too low for CSX. That's not a good sign at all. CP didn't do their homework very well and CSX's board will probably remember that if another offer is made. As a CSX and NS shareholder, I would prefer for the status quo to continue.

Matt Langworthy wrote:

bostontrainguy wrote:Yes, but it will come down to the CSX shareholders who will be offered a nice premium on their stock price.

Nice premium? CP's offer was apparently too low for CSX. That's not a good sign at all. CP didn't do their homework very well and CSX's board will probably remember that if another offer is made. As a CSX and NS shareholder, I would prefer for the status quo to continue.

We don't know what CP's offer was. It might not have been a case of the price being too low at all. It may have been a case that CSX doesn't want to give up control and their jobs.

If a bidding war starts, shareholders will be be offered a premium by someone interested. It's just the way things go on Wall Street.

Good morning fellow railroad speculators, I would have to believe that if csx. had the proverbial century 21 type of sign swinging in their front yard, that an American class one would counter offer a cn. bid to purchase them, and if that were to happen than n.s would be forced to follow suit. For example, if u.p. purchased csx, than how on earth could n.s. and b.n.s.f compete against a full coast to coast owned railroad. Seems like b.n.s.f would be forced to acquire n.s. Keep in mind that the container transport part of their business will be experiencing major changes due to the Panama canal widening. U.p. for example is constructing a new 1200 acre hump yard about 10 miles west of Hearne Texas, at a location called valley junction to handle the container volume coming into the Texas ports. Containers that are currently being offloaded in long beach Ca. and sent east. So in a nut shell, I would have to believe that another American class one railroad would not let c.n. gain any market share of their current or future business.

Most don't think the regulators will allow a coast to coast merger, or a total one coast merger.

In fact, they might not even allow CP plus CSX on those grounds.

Who knows? A transcontinental railroad that joins two systems end-to-end would not create much of a anti-competition argument. And much can be debated about the improved efficiency and shipping cost advantage of using one system (assuming there is another rail system competitor and of course there is always trucking).

At the very least, perhaps the CSX and BNSF "names" will eventually disappear and real road names will return? It will be interesting to see what they come up with.

It's probably just a matter of time before a real coast-to-coast system emerges. This could get interesting.

lvrr325 wrote:Most don't think the regulators will allow a coast to coast merger, or a total one coast merger.

In fact, they might not even allow CP plus CSX on those grounds.

I would say the different... regulators would likely allow that since CP and CSX really dont overlay each other that much... This merger/takeover does not cause a lot of customers to lose competitor.

I am pretty sure that, assume this does go on, NS will ask for some of these tracks to be given to NS, such as Bridge line between Binghamton and albany, port of albany, and few others in exchange that NS will not protest against the merger/takeover.

I really cant see STB/regulators reject this... not too many overlays loss... few in Chicago.. Bridge line.... Sunbury Sub... STB's / regulator's biggest concern would be how can CP and CSX avoid the major melt down...

We can stop having talk about CP-CSX.... CP confirmed that they ended talk with CSX...

A hostile takeover is certainly a possibility especially if any major railroad fears that they will be locked out of markets in half of the country! Okay, 1/3 of the country. But an important 1/3 especially considering the impact of the new Panama Canal.