Railworks America

Huh...?
Canadian Pacific looking to buyout Norfolk and Southern?

I don't think that would ever get by the regulators but who knows. Personally I think he's just trying to jack his stock which is down 20% this year.

CP is persistent....ill give them that. Last year they tried to get CSX and that failed....

CP has nowhere near the amount of funds to buy out NS so im sure this wouldn't be a buyout....although there is a very very slight chance NS might seek a merger opportunity due to the transcontinental traffic opportunity...more like a neutral merger on both sides...kinda like how BNSF was created, but I don't think this is a real possibility due to the government stepping in like what happened to CN and BNSF years ago.

Oh gawd! Here comes another mega-monster-merger name. Nothing sensible like "Norfolk & Pacific" or "Canadian Southern". It will probably be CPNS. Take that BNSF!

Anyway, don't even count on US regulators being any help to stop this. Shareholder pockets have no national pride - just ask the 30,000 or so former employees of Anhueser-Busch. Speaking of which, there are also a multitude of ways to raise the cash for CP (20Bn value) to buy NS (27Bn value). ABI is offering 107Bn for SabMiller, which makes the proposed rail merger look like kid lunch money. Plus, selling to Canada is not like selling to the Soviets or Red China, so I expect the deal will be looked upon more favorably. One side benefit will probably be an increase in mileage for regionals such a RJCorman and Gennessee, as the new conglomerate moves to divest competeing lines to satisfy anti-trust issues.

If this goes through, I predict in the next five years Union Pacific will make a move, possibly hostile, for CSX. Then it will be left to BNSF, CPNS, KCS, and UPSX to figure out how to divey up CN.

Just speculation , but fun nonetheless.

There's almost no way this is remotely possible. To me after seeing this and the previous attempted grab at CSX, it looks like CP's only hope is to try and scare the industry into thinking they're big and bad while they internally fall apart. I'm just going by what I see here in the north east.

I wonder if the the Big 6 will become the big 5 or if they split up CN the big 4.

~E: someone should make a fictional Paint Scheme as if the merger happened. A combination of CP Action Red and NS Black might make a good combo...

NOOOOOOOOOOOEEEEEEEEEEEEEEEEEEEELLLLLLLLLLLL!

JerryC wrote:If this goes through, I predict in the next five years Union Pacific will make a move, possibly hostile, for CSX. Then it will be left to BNSF, CPNS, KCS, and UPSX to figure out how to divey up CN.

THERE CAN BE ONLY ONE

Chacal wrote:

JerryC wrote:If this goes through, I predict in the next five years Union Pacific will make a move, possibly hostile, for CSX. Then it will be left to BNSF, CPNS, KCS, and UPSX to figure out how to divey up CN.

THERE CAN BE ONLY ONE

LMAO!

In all seriousness, one wonders how things like this can happen, but sometimes they do.
Look at Rio Grande buying Southern Pacific years ago. You have to wonder how such a relatively small outfit bought the S.P. giant.
In this case I keep reading in Trains Magazine of how poorly the Canadian Railroads are doing right now, so how do they get the capital to do something like a C.P. N.S. merger?
I think they'll most likely rape the healthy railroad of equipment and funds and then dump it at a bargain price for some other class 1 to take over.
Given how much they swap equipment across the continent, I'd think a BNSF, NS merger would make more sense.

Warren Buffet has invested heavily in NS before, so its not beyond a stretch to think that if a CP merger falls through that BNSF might snatch them up.

The Canadian railroads might not be doing so well, but neither are NS and CSX right now. Coal is their backbone and it's down in between 20-30% for both railroads. Harrison might be hoping NS is in panic mode with the downturn in business.

JerryC wrote:Warren Buffet has invested heavily in NS before, so its not beyond a stretch to think that if a CP merger falls through that BNSF might snatch them up.

The Canadian railroads might not be doing so well, but neither are NS and CSX right now. Coal is their backbone and it's down in between 20-30% for both railroads. Harrison might be hoping NS is in panic mode with the downturn in business.

As it sits right now nobody is doing too fantastic compared to previous years but its only temporary for everyone, especially the Canadian roads who have heavy reliance on the oil industry, the price is supposed to be going back up within the next year (give or take) and once that happens CN and CP will be stressing a lot less. I imagine that it will help NS and CSX too but like you said coal is their main revenue source and that's not looking so good in the near future.

Someone call for a Canadian Southern painted locomotive?

Noel wrote:Someone call for a Canadian Southern painted locomotive?

Interesting...

Reminds me of the Academy SD70Mac

Imagine that, the CASO is making a comeback.

Noel wrote:Someone call for a Canadian Southern painted locomotive?

Thoroughbred of transportation or Red Herring?
Maybe the horsey should be a Zebra Noel.
Seriously, that repaint came out pretty good.

It does fit in with the Canadian Govt's long term military plans for the U.S....