[020316.EN.BIZ] CP Wins Big Shipper Backing In Write-in For Its Norfolk Southern Takeover

THE Canadian Pacific (CP) has announced that most of the letters received from shippers on CP's proposed takeover of the Norfolk Southern Railway have been positive.

More than 80 letters of support from a broad cross section of customers for CP's proposal to acquire Norfolk Southern (NS) have been received, said the CP press release.

Sixty-two have been posted to the Surface Transportation Board (STB) website. That brings the number of letters from shippers in support of the proposed CP-NS combination to more than three for every one opposed, said the Canadian company.

A quick look at four of the most recent letters posted, revealed found one anti, two pro, and one urging caution. The two pros being from Canadian companies and both had the same phrase "scale and reach", a sign of a template letter.

Nonetheless, "CP believes that its proposed combination with NS will introduce alternative options for re-routing traffic around areas of congestion, create new opportunities to generate the most efficient route for rail shipments, allow CP-NS to provide end-to-end service to customers and improve overall service for shippers of all sizes across North America".

Earlier this month, CP submitted a resolution to NS shareholders to ask their board of directors to meet with CP.

CP is also seeking a declaratory order from the STB as a means to better understand the STB's views on the proposed voting trust model ahead of any formal application.

Source : HKSG.