Report: CSX rejects merger with CP

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Report: CSX rejects merger with CP

Postby Dick H » Sun Oct 12, 2014 7:15 pm

"Canadian Pacific Said Rebuffed in Merger Approach to CSX" (Bloomberg News)

http://www.bloomberg.com/news/2014-10-1 ... o-csx.html
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Re: Report: CSX rejects merger with CP

Postby NorthWest » Tue Oct 14, 2014 8:21 am

Interestingly, the motive may not be merger, but the IHB. Speculation has it that payment for the part of the D&H sold to NS may be the NS stake in IHB, and this is an attempt to bring CSX to the table. Harrison wants another way around Chicago.
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Re: Report: CSX rejects merger with CP

Postby Gilbert B Norman » Fri Nov 07, 2014 10:04 am

This is a most interesting observation, Mr. NorthWest; bets anyone, Jaeger is a chess player?

Let's see, presently SOO Line owns 49% of The Harbor; that of course means CP calls those shots. 25.5% each is owned by CSX and NS, which represents a split of the 51% owned by ConRail, which acquired that share by way of PC, as a successor to NYC.

Now let's see; the Albany-Binghamton lines of the D&H are valueless to CSX; they have access to the Port of Albany (oil traffic transshipped to waterway) and to New England as is. NS needs that D&H line to interchange traffic off the ERIE, not only to Port of Albany, but also to interchange with the "flyboy lines" (Pan Am makes the going great) so that their marketing arrangement with such may continue. Could an outright NS-PAR merger be in the offing?

So with 74.5% control of The Harbor, CP would be in better position to dictate the terms of an efficient interchange of traffic at Chicago between CSX and the Western roads. Of course CSX can interchange with either BNSF or UP through the city and still would have the B&OCT to help facilitate such. But CSX options would be reduced.

Other discussion related to this stillborn merger proposal can be found at both the CSX and CP Forums.
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