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 Post subject: Re: News from Hell
PostPosted: Tue Nov 10, 2015 5:21 pm 

Joined: Wed Feb 02, 2011 9:40 pm
Posts: 723
dinwitty wrote:
several eastern states adopted policies to promote railroad heritage, its a clear statement about the railroad history in the regions.


What the heck do states have to do with it or say about it, especially where Class 1 railroads are concerned?


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 Post subject: Re: News from Hell
PostPosted: Tue Nov 10, 2015 8:30 pm 

Joined: Sat Feb 02, 2013 10:18 pm
Posts: 64
superheater ---
So -- all US corporations are legally required to
put maximizing shareholder revenues ahead of
everything else? Even ahead of obeying laws
that conflict with that imperative? Wow.....
Then -- why don't all US corporations sell illegal
drugs and run houses of prostitution? Those make
lots and lots of money! If you are right about
maximizing shareholder revenues, then it should
not matter how that is done. Or does it?

I ask this NOT because I am in favor of such
things -- I am NOT! -- but to make a point.
Which I trust I have done.

Look -- I KNOW beyond a shadow of a doubt that
the laws that apply to publicly-traded US corporations
are NOT that simple. All corporations must obey many,
many laws, and the one you refer to is but one of very,
very many -- the exact interpretation of which keeps
armies of highly- paid lawyers very busy.

This legal requirement you refer to has far-reaching and
very destructive consequences -- the least important of
which is the almost certain end of the NS's wonderful 21st ]
Century Steam Program. The most important consequence
of such a short-sighted and cruel law is the almost certain
destruction of life as we know it on this beautiful blue-green
planet. Pointing this out is not "whining". It is merely calmly
stating what will happen if such horrible laws are not changed --
or put into proper relation to other laws.


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 Post subject: Re: News from Hell
PostPosted: Tue Nov 10, 2015 9:17 pm 

Joined: Thu Nov 22, 2007 5:46 am
Posts: 2455
Location: S.F. Bay Area
MargaretSPfan wrote:
superheater ---
So -- all US corporations are legally required to
put maximizing shareholder revenues ahead of
everything else?

There's a lot of wiggle room in there. A great case in point is Ben & Jerry's. The main factor is that you are candid with the prospective stockholders so they know what they are getting.

Even more, they are now allowing structures like L3C which specifically are for that "profits second" sort of for-profit.


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 Post subject: Re: News from Hell
PostPosted: Wed Nov 11, 2015 12:25 am 

Joined: Sun Aug 22, 2004 11:54 pm
Posts: 1753
So -- all US corporations are legally required to
put maximizing shareholder revenues ahead of
everything else? Even ahead of obeying laws
that conflict with that imperative? Wow.....
Then -- why don't all US corporations sell illegal
drugs and run houses of prostitution? Those make
lots and lots of money! If you are right about
maximizing shareholder revenues, then it should
not matter how that is done. Or does it?

No, and its a rather silly proposition to liken the consideration of a lawful business proposition such as a sale, merger or consolidation to prostitution or narcotics.

Now lets try to discuss the effects on preservation related matters.


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 Post subject: Re: News from Hell
PostPosted: Wed Nov 11, 2015 1:38 pm 

Joined: Fri Apr 27, 2012 6:30 pm
Posts: 209
E. Hunter Harrison is a scatterbrained railroader if he sells off part of the CP to NS only to suddenly change his mind and want to merge the CP into the NS. Also, doesn't he know NS might become a boat anchor to the CP due to its Virginia coal field woes? I know NS does not depended entirely on coal as its life blood, but it was a major commodity that is not adding much to the company coffers anymore.

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 Post subject: Re: News from Hell
PostPosted: Wed Nov 11, 2015 9:14 pm 

Joined: Sat Feb 02, 2013 10:18 pm
Posts: 64
Tony Held --
Thank you very much for that concise and very informative reply.

We will just have to wait and see what happens.

superheater ---
Methinks I owe y'all an apology. I was just trying to make a
point by exaggerating things a lot -- by pointing out that, yes,
other things besides stockholder revenues are, indeed, considered
when corporations consider whether or not to try to merge
with other corporations. As I wrote later in my post, nothing is
that simple when it comes to business decisions.


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 Post subject: Re: News from Hell
PostPosted: Fri Nov 13, 2015 11:15 am 

Joined: Fri Apr 27, 2012 6:30 pm
Posts: 209
The more I read the speculation about this proposed merger, the more the words "Penn Central" comes to mind.

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Tony Held


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 Post subject: Re: News from Hell
PostPosted: Wed Nov 18, 2015 12:59 am 

Joined: Fri Apr 27, 2012 6:30 pm
Posts: 209
It is not speculation anymore:

http://trn.trains.com/news/news-wire/2015/11/17-ns-responds

Pray for the 611 (and the 765, 4501, and 630).

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Tony Held


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 Post subject: Re: News from Hell
PostPosted: Wed Nov 18, 2015 12:38 pm 

Joined: Thu Mar 21, 2013 8:16 pm
Posts: 27
Location: Atlanta, GA
Norfolk Southern hostile to Canadian Pacific's $28.4 billion bid

NS responds. Doesn't look like they're that interested in merging.


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 Post subject: Re: News from Hell
PostPosted: Wed Nov 18, 2015 3:26 pm 

Joined: Fri Apr 27, 2012 6:30 pm
Posts: 209
Canadian Pacific claims it offers Norfolk Southern a "sizable premium":

http://trn.trains.com/news/news-wire/2015/11/18-cp-clarifies-letter

I can't help but wonder if Canadian Pacific is not in trouble, like the Southern Pacific was when it tried to merge with the Santa Fe.

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 Post subject: Re: News from Hell
PostPosted: Mon Nov 23, 2015 3:38 pm 

Joined: Fri Apr 27, 2012 6:30 pm
Posts: 209
Uh oh, E. Hunter Harrison is already talking about selling off Norfolk Southern land if he succeeds in buying NS:

http://calgaryherald.com/business/local-business/cp-rail-ceo-sees-huge-cash-flow-from-selling-norfolk-southern-land

Two words come to my mind: Penn Central. That star crossed corporation was obsessed with non-rail assets too.

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 Post subject: Re: News from Hell -- FINALLY Over
PostPosted: Mon Apr 11, 2016 11:12 am 

Joined: Mon Jan 11, 2016 4:48 pm
Posts: 14
Location: Virginia
This is FINALLY over! Maybe NS will allow fall trips with 611 - she's currently scheduled to make her last appearance on Sep 24-25 at the Danville Rail Heritage Days. So she won't be put away and winterized in July like last year.


Canadian Pacific drops Norfolk Southern bid
Eric Atkins
The Globe and Mail
Published Monday, Apr. 11, 2016 7:43AM EDT

Analysts and investors cheered a move by Canadian Pacific Railway Ltd. to abandon its pursuit of Norfolk Southern Corp.

CP shares rose by more than $5 after the Calgary-based rail carrier said its six-month takeover bid for the Virginia-based railway was over. Norfolk Southern shares fell by $1 in mid-morning trading in New York.

CP share buybacks are likely come “fast and furious” and support the stock price, which has fallen by 23 per cent in the past 12 months, said Walter Spracklin, a Royal Bank of Canada analyst.

“In our view, given that the uncertainty surrounding the merger has subsided, management can return focus to enhancing its network and operations,” Mr. Spracklin said in a research note. “The railroad had already been running quite well. Accordingly, a management team of this calibre that is now able to redirect all of its focus and energy into railroading certainly bodes well from a fundamental standpoint – and we see upside to consensus estimates as a result.”

Citi Research analyst Christian Wetherbee called CP announcement a surprise, but noted the “deck was stacked heavily against a favourable regulatory outcome.”

A long list of companies and U.S. politicians had voiced their opposition to the deal. They said it would reduce service and choice for shippers. CP’s reputation as a cost-cutter that runs with a lean workforce also did not endear it to others. Opponents of the trust structure CP planned to use to assume control of Norfolk Southern included the U.S. Department of Justice and the U.S. Army.

Mr. Wetherbee said in a research note CP is likely to turn its focus back to generating revenue and buying back shares, which had been on the hold since the fall, when CP launched the takeover bid, which was worth about $28-billion (U.S.).

CP maintained rail consolidation was needed to improve service and reduce congestion at a time there is little new rail infrastructure being built.

Norfolk Southern rebuffed three offers from CP, calling them undervalued and unlikely to win approval of the Surface Transportation Board, the regulator.

Mr. Wetherbee said CP’s share buyback program could be announced this month, and that the company has enough cash and revenue buy back 6 per cent of the shares without taking on new debt. The program could rise to encompass 10 per cent of shares, he said.

“CP remains one of the highest-quality rails in the sector, in our view, given strong fundamentals including favourable competitive dynamics and a unique operating model run by a strong management team,” Mr. Spracklin said. “The buyback bolsters this view and we believe that management is capable of extracting more efficiency out of its network now that it can refocus from an acquisitive stance to an operating performance stance.”

CP said will no longer ask for the support of Norfolk Southern shareholders at the company’s upcoming annual meeting.


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