Despite a 4% drop in revenues, Canadian Pacific Railway Ltd. posted its lowest-ever first-quarter operating ratio of 58.9% and reported diluted earnings per share of $3.51, or $2.50 on an adjusted diluted earnings per share basis, for first-quarter 2016.
The Association of American Railroads on April 12, 2016 presented Michael Hoey, a CSX Transportation civil engineer from Philadelphia, Pa., the 2016 John H. Chafee Environmental Excellence Award. U.S. Senator Cory Gardner (R-Colo.) was the 2016 John H. Chafee Congressional Environmental Award.
Well, it’s all over but the ruminating and regurgitating: Hedge fund king Bill Ackman had his blinders ripped off, read the handwriting on the wall, and wisely deep-sixed his attempt to bolster his sagging pockets by going after Norfolk Southern, a damn good railroad that doesn’t need a radical makeover.
On Monday, April 11, 2016, Canadian Pacific Railway Ltd. terminated its efforts to merge with Norfolk Southern Corp.. This includes “withdrawal of a resolution asking NS shareholders to vote in favor of good-faith negotiations between the two companies,” CP sais. “No further financial offers or overtures to meet with the NS board of directors are planned at this time.”
The Surface Transportation Board, in seeking comments addressing Canadian Pacific’s petition for an expedited declaratory order, has received letters from the U.S. Department of Justice and the Department of Defense-United States Army, Military Surface Deployment and Distribution Command Transportation Engineering Agency, Railroads for National Defense Program opposing CP’s proposed acquisition of Norfolk Southern, and/or CP CEO Hunter Harrison becoming a senior executive at NS.
Chairman of the U.S. House Transportation and Infrastructure Committee Bill Shuster (R-Pa.) on April 5, 2016 announced his opposition to Canadian Pacific Railway’s proposed merger with Norfolk Southern.
Canadian Pacific on March 29, 2016 filed its definitive proxy statement for its Norfolk Southern Corp. (NS) shareholder resolution asking NS’ Board of Directors to engage in good faith discussions with CP regarding a business combination. CP also filed a letter that will be sent to all NS shareholders about the opportunity to create significant value for NS shareholders.
On March 10, 2016, the Surface Transportation Board issued a decision, Docket No. FD 36004, “Canadian Pacific Railway Limited—Petition for Expedited Declaratory Order,” responding to CP’s March 2 petition, and setting a timeline for replies and CP’s rebuttal. Following is the full text:
Canadian Pacific on March 9, 2016 filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) that outlines the shareholder resolution to be considered at the upcoming Annual Meeting of Norfolk Southern (NS) shareholders requesting that the NS board of directors “promptly engage in good faith discussions with CP regarding a business combination.”
Canadian Pacific and the City of Vancouver on March 7, 2016 jointly announced that they have agreed to terms for the sale by CP of the Arbutus Corridor to the City for $55 million.