Elevate your local knowledge

Sign up for the iNFOnews newsletter today!

Select Region

Selecting your primary region ensures you get the stories that matter to you first.

Canadian Pacific seeking early approval of merger structure

OMAHA, Neb. – Canadian Pacific says it will ask federal regulators for preliminary approval of the structure of its proposed takeover of Norfolk Southern railroad.

CP CEO Hunter Harrison said Tuesday his railroad is taking this step because shareholders of both railroads recommended it.

Canadian Pacific has proposed setting up a voting trust and installing Harrison as CEO of Norfolk Southern while the deal is reviewed.

Part of the reason why Norfolk Southern has rejected all of Canadian Pacific’s offers so far is because it questions whether the U.S. Surface Transportation Board would approve such a deal. No major rail mergers have been approved since regulators imposed tough rules on them in 2001.

But Norfolk Southern has also said it believes Canadian Pacific’s offers remained “grossly inadequate” even as they approached $30 billion.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles