CANADIAN
Pacific Railway (CP) CEO Hunter Harrison said he faces an uphill battle to
convince CSX Corp - not just Norfolk Southern - of the merits of
a CP takeover, reports Bloomberg.
"Neither
one of them think they fit well with us. So I've got a selling job to do if
we're going to make this successful," said Mr Harrison.
He
ruled out a hostile bid, a subject of much speculation. "When you go
hostile, it doesn't create the type of esprit de corps to get things
accomplished," he said.
Mr
Harrison has been pursuing an acquisition that would create a coast-to-coast
railway, eliminating rail-car exchanges between carriers.
Mr
Harrison has made three offers to buy Norfolk Southern, including one in
December that valued the US company at US$27 billion. All were rejected.
He
conceded that CP should have used a "little softer" approach to win
over Norfolk
Southern CEO Jim Squires and his team, said Harrison at his home in
Ridgefield, Connecticut.
"We
made an offer with Norfolk Southern with a letter, a pretty extensive offer, a
four- or five-page letter," he said. "Maybe we should gone in and
shaken hands, sat down and just talked first. Maybe their impression was that
we were trying to back them into a corner. It was not our intent."
The
Calgary-based railway is proposing a resolution to Norfolk Southern
shareholders requesting that the carrier's board engage in "good
faith" discussions. Should that resolution be rejected, CP would end
efforts to merge and focus on its own network.
Source
: HKSG.
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