Proposed Norfolk Southern NS Canadian Pacific CP Acq/Merger

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Proposed Norfolk Southern NS Canadian Pacific CP Acq/Merger

Postby s4ny » Mon Nov 09, 2015 2:01 pm

NSC is halted pending CP takeover.
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NS stock halted pending CP takeover.

Postby s4ny » Mon Nov 09, 2015 2:02 pm

I guess CP likes the former D&H line they just sold, they are buying all of NS to get it back!
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Re: NS stock halted pending CP takeover.

Postby s4ny » Mon Nov 09, 2015 2:11 pm

NSC trading up $9.50, all major rail stocks higher now.

This starts the next round of mergers.
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Re: NS stock halted pending CP takeover.

Postby YamaOfParadise » Mon Nov 09, 2015 2:14 pm

Here's an actual source, from Bloomburg:

Canadian Pacific Railway Ltd., the second-biggest railroad in Canada, is exploring a takeover of U.S. carrier Norfolk Southern Corp. in a fresh attempt to consolidate the North American industry, according to people familiar with the matter.

Canadian Pacific is raising financing and has held early-stage merger talks with Norfolk Southern, which is valued at about $24 billion, said two of the people, who asked not to be identified because deliberations are private. Discussions are preliminary and talks may not progress or lead to a deal, they said.

Shares in Norfolk Southern rose as much as 13 percent in New York after trading was temporarily halted, the biggest intraday gain since 2001. Canadian Pacific increased as much as 7.2 percent in Toronto.
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Re: NS stock halted pending CP takeover.

Postby lvrr325 » Mon Nov 09, 2015 2:45 pm

I'd just as soon not see that happen. And it's certainly not guaranteed, they tried with CSX last year and didn't get anywhere. But it's good for the stockholders.
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Re: NS stock halted pending CP takeover.

Postby Jeff Smith » Mon Nov 09, 2015 3:25 pm

I merged the two topics; I don't think we needed a separate one in NYS, but I appreciate the post! I'm also going to make this post global for a few days.
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Re: NS stock halted pending CP takeover.

Postby BM6569 » Mon Nov 09, 2015 5:15 pm

I'd like to hear more about why the stock was halted. That only happens if a deal is close?
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Re: NS stock halted pending CP takeover.

Postby s4ny » Mon Nov 09, 2015 6:13 pm

Stopped trading because the stock started rising quickly and triggered
a circuit breaker. Was halted for less than 10 min.

This does not indicate if the deal will actually take place.

The companies are just talking.
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Re: NS stock halted pending CP takeover.

Postby amtrakhogger » Mon Nov 09, 2015 9:34 pm

CP red on the Corridor, cool!
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Re: NS stock halted pending CP takeover.

Postby Backshophoss » Mon Nov 09, 2015 9:47 pm

Figure on various oversight committees taking a close look at the proposed merger,from the STB on down.
Might include some "anti-trust" people as well,from both sides of the border.
This could "flame out" like SP+SF did.
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Re: NS stock halted pending CP takeover.

Postby mtuandrew » Mon Nov 09, 2015 10:07 pm

Backshophoss wrote:Figure on various oversight committees taking a close look at the proposed merger,from the STB on down.
Might include some "anti-trust" people as well,from both sides of the border.
This could "flame out" like SP+SF did.

Or like BNSF+CN.

I'm not convinced that CP+NS will go through, but this is about the best time for EHH to make such a huge move - coal prices are way down, Moorman is just about out, CP's operating ratio is way down (and oil is way up), and EHH has at least some investor confidence. (Gotta admit though, my first thought was, "CP is buying NS? Not the other way around??")
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Re: NS stock halted pending CP takeover.

Postby justalurker66 » Mon Nov 09, 2015 11:32 pm

The thread title makes it sound like a done deal. I am glad the reality is that they are just talking.

Perhaps something will come of it ... perhaps not.
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Re: NS stock halted pending CP takeover.

Postby piker » Tue Nov 10, 2015 5:42 am

Are there any operational efficiencies or real world savings in this or is it more of a financial engineering scheme. The corporate cultures seem totally opposite. I would think NS would tell EHH and Bill Ackman to pound sand just on principle but if there is money to be made...
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Re: Proposed Norfolk Southern NS Canadian Pacific CP Acq/Mer

Postby talltim » Tue Nov 10, 2015 7:53 am

NS+CP=Southern Pacific ;)
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Re: Proposed Norfolk Southern NS Canadian Pacific CP Acq/Mer

Postby sd80mac » Tue Nov 10, 2015 9:15 am

talltim wrote:NS+CP=Southern Pacific ;)



and back to spider widow scheme... with except for speed lettering :P :P
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