Mar 21, 2021
The STB is the one to have final say in the matter.
Didn't the release say STB had approved it already....?
STB was notified at the time the announcement was made to the public.
The STB will still have to rule on the transaction.
We now have 3 threads including this one, or maybe more covering the subject. Should we combine?
As per our site owner, when we have these situations, (in any one forum), they are merged into one.
CN shares fell 8% today following their announcement that they will bid $33.7 Billion for KCS, topping CP's $25 Billion offer announced a month ago. KCS shares jumped 15%. I guess we should have figured that CN wouldn't sit idly by and be shut out.
I see why their price fell. They got the ICG long ago. That's a lot of money to spend on more of what they already have.
Still to be determined if this is the Financiers version of blind man's bluff. Does CN really want KCS or do they really want CP to have to pay more for KCS and thus hurt their financial abilities to compete with CN after making the higher priced acquisition.
Welcome to the world of cutthroat financial negotiations. Just like what we go through with automobile dealers, only for slightly more money.
This has the makings of the CSX vs NS battle for CR, albeit on a much smaller scale.
Good day for rail stocks. At about 1PM:
NS up 3.2% (new 52 Week High)
CSX up 4.8% (new 52 Week High)
UP up 2.0% (new 52 Week High)
CN up 1.9% to $112 (52 Week High is $119.61)
CP up 4.2% to $359 (52 Week High is $390.46)
KCS up 1.3% (new 52 Week High)
CSX isn't just a 52 week high - it is a ALL TIME HIGH
Yep, the whole industry has had a good ride.
Feature when all is said and done in the railroad industry there will end up being two carriers -
CN & CP
I suspect you probably are right. Though I don't understand why from a corporate perspective.
Do you have any insight or experience that leads you to this conclusion?
It's probably too early to predict the final merger moves, if they come at all. UP's market capitalization is a whopping $146 Billion, significantly larger than CN's market capitalization of $79 Billion and CP's $49 Billion. CSX's market cap matches CN's at $79 Billion and NS's is nearly the same at $77 Billion.
With this in mind, I'm doubting that neither CN or CP could engineer a hostile takeover of UP, CSX or NS. Perhaps friendly mergers might someday accomplish it, but ceding control of U.S. rails to a foreign company would be met with a cold reception by U.S. shippers and Congress.
Given the mind-bending complexity of future mergers on a continental scale, I'm doubtful that anything is on the horizon. But I'd never say never ...
Funny, I don't think of Canada being a "Foreign Country". They always seem to want what's best for everyone in a contract agreement regardless of who had 51% and signed on the top line. Many of my most pleasant and productive programs were with Canadian co-contractors and subs.
Though with the North American rail network and industry, it definitely might get down and dirty. Consider what Hunter Harrison accomplished.
Just the irony of it all