This page has been archived and commenting is disabled.
Dow Transports Jump On Canadian Pacific-Norfolk Southern Merger 'News'
Having dramatically converged to the tumbling price of WTI Crude, Trannies are jumping dramatically after Bloomberg runs the following flashing-red headline:
- *CANADIAN PACIFIC SAID TO EXPLORE TAKEOVER OF NORFOLK SOUTHERN
Amid crashing railcar loadings (down over 23% YoY - worst since the financial crisis), this 'syngery' may make some sense but will likely only mean moar layoffs as "two wrongs do not make a right."
As Bloomberg reports,
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.
Representatives for Canadian Pacific and Norfolk declined to comment.
A move for Norfolk Southern, the second-biggest railroad in the eastern U.S., would revive Canadian Pacific’s effort to build a transcontinental carrier after talks with CSX Corp. failed last year. In floating the idea of a CSX tie-up, Canadian Pacific Chief Executive Officer Hunter Harrison upended the long-held view in the industry that it was fruitless to even discuss another merger because regulators would object.
Buy them all...
This is why they may be considering a merger...
Crude-by-rail is continuing its turn from boom to bust in the third quarter as carloads plunged 23.5% compared with the same quarter a year ago.
U.S. Class I railroads originated 101,167 carloads of crude oil, a number that fell 31,090 carloads from a year ago.
Carloads dropped nearly 9% from the second quarter.
Railroads have seen the business dry up as crude oil prices hover in a territory where it's no longer profitable to use more expensive fracking methods to drill for U.S. oil and then transport it long distances to market.
* * *
But hey unemployment is at 5% so everything must be awesome.
- 164 reads
- Printer-friendly version
- Send to friend
- advertisements -




They are doing more than DOUBLE the decade average. Things are very very bad.
Uncle Warren rejoices!
Let's keep up the good work stifling competition, consolidating industries, laying off the needless employees, cutting back on benefits and enriching the upper class.
I wonder what the banking fees will be? (Big Knukies. They'll be very very big)
But it's all good. It's for the bankers and rail executives children.
My secretary pays more taxes than I do! Something is wrong!
Buffett must have sent in the order. Been invested in NSC since early 2013, thank you Fed!
Ackman is CP's largest shareholder.
Yep. I was implying that with all the negative BNSF press, Buffett needed to send the regulators elsewhere. I could be wrong and Buffett is just inviting even more regulators to look at his railroads.
We're doomed! Doomed!
"Amid crashing railcar loadings (down over 23% YoY - worst since the financial crisis)"
I would have thought the number of railcar crashes doing down would be a good thing. But I see from the ZH story just below this that two more of Uncle Warren's trains have crashed in the last week.
I guess Becky had better learn to let go of the throttle a little sooner.
It's not only AWESOME, it's awesomer-ER!!
Wouldn'tbe funny if Keystone energy said, "ya know what, skip a fucking pipeline and a fucking US tree hugger president. We'll just have our railroad buy a US railroad and move the oil by rail. US assholes and we can fuck with Buffet while we're at .
good thing we don't have a pipeline to stop the collosal waste of the railroad transportation of Oil
Oh those Trannies! Who is Caitlyn Jenner merging with? I can almost feel my stawks rising now.
Dennis Rodman sent me a few snapchats the other night. He seems like an interesting fellow.
Berkshire or UP will now have to buy CSX.
Go Canadian Pacific! You have always been a great RR and look forward to this. Miss the passenger service you had in Maine.