Norfolk Southern Corporation (NYSE:NSC) has received a $28.4 billion offer from Canadian Pacific Railway Ltd. (NYSE:CP), and the board is comprehensively considering it. According to Canadian Pacific, the new company will have more potential for profit growth than what each entity could achieve separately.
The Procter & Gamble Company (PG) held its annual shareholders meeting yesterday, where the company’s shareholders and executives shared their perspective on the upcoming innovation and product-line strategy.
P&G’s CEO Alan G. Lafley was the main speaker at the meeting. He talked about the company’s vision and how it builds customer-centered brands and products that add value for customers, employees, and shareholders alike.
Canadian Pacific Railway Limited (CP) reportedly proposed a merger deal with US rail giant, CSX Corp. (CSX) on the back of an improving industry environment. The news was first reported by The Wall Street Journal, which cited anonymous sources about the proposal to combine two of the largest rail
Norfolk Southern Corp.’s board has officially rejected a revised takeover offer from Canadian Pacific Railway Ltd., saying it’s worth less than the first proposal and doesn’t do anything to address its regulatory concerns.
“The consideration in that proposal has less overall value and cash than your prior proposal, which the board had determined to be grossly inadequate,” says the rejection letter, signed by CEO Jim Squires and lead independent director Steven Leer.
In 2001, U.S. regulators imposed a seemingly insurmountable condition on big railroad mergers: A deal had to not only preserve competition, but actually enhance it.
This may seem laughable at first glance. How often does a combination of two companies result in more competition, after all?
But as Canadian Pacific Railway Ltd. details its US$28.4-billion proposal to acquire Virginia-based Norfolk Southern Corp., analysts and the company itself are saying the hurdles are high, but not impossibly so.
MONTREAL — Canadian Pacific Railway Ltd. says industry consolidation in North America is inevitable, amid reports that it has approached a U.S. rival about a potential merger.
Chief operating officer Keith Creel declined to confirm it is eyeing Norfolk Southern, about a year after an overture to CSX Corp. ended without a deal.
But he told a Toronto conference that an industry pause on mergers will eventually end.
“When it comes to consolidation it’s not if but when,” he told a Scotiabank transportation conference.
Canadian railway stocks have been a great place to be for investors and not just for the long term. Canadian National Railway Co. is up more than 25% on the year, Canadian Pacific Railway Ltd. has risen about 35%, and both reported strong first-quarter results earlier this week, seemingly clearing the track for more room to roll.
But all is not rosy for the rails. For one thing, there is some uncertainty about revenues from moving commodities such as grain, coal and oil, tougher comparisons to previous quarters and lofty valuations to consider.
The race to build natural gas export terminals on Canada’s Pacific Coast is inspiring another competition as producers including Painted Pony Petroleum Ltd. position themselves as potential takeover targets.
Developers of the gas-rich Montney shale that straddles Alberta and British Columbia are among the best-performing Canadian energy stocks this year, including Painted Pony, Crew Energy Inc. and Birchcliff Energy Ltd. Regulators estimate the Montney, the supply source closest to the sites of proposed LNG terminals, contains 145 years worth of Canadian gas consumption.