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Post by kentuckysouthernrwy on Apr 12, 2016 8:08:25 GMT -8
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Post by roadkill on Apr 12, 2016 8:17:17 GMT -8
Good.
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Post by Amboy Secondary on Apr 12, 2016 9:19:52 GMT -8
Interesting story on the Bloomberg Financial Website, yesterday. Knowing that the STB was not inclined to approve a merger, they tried to circumvent the regulators, by convincing the NS board to replace the current NS management with hand picked CP managers, thus giving them a merger in fact, without assuming actual (legal)control. Unfortunately, for CP, they got caught, and everyone is opposing them so no choice but to back out.
it's all about keeping the CP's stock price up where it's at, and nudging it higher. It's becoming harder to squeeze blood out out of the CP stone, (further cost cutting), so they need another gimmick.
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Post by peoriaman on Apr 12, 2016 11:07:48 GMT -8
Does this mean they'll go back to pursuing the CSX?
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Post by kentuckysouthernrwy on Apr 12, 2016 12:29:46 GMT -8
Does this mean they'll go back to pursuing the CSX? I believe from the linked articles that the money fellow, Ackerman, has lost his a$$ and lots of it elsewhere and there is not money for the railroad expansion. The politics of it were quite interesting with objecttions from across the board, railroad customers, other railroads, the US Depts of Defense and Justice, all objecting for wide ranging reasons. I'm not even sure that James' Video Company merger on April 1 would pass scrutiny but has more merit in succeeding than the CP+anybody activities. |
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Post by Spikre on Apr 13, 2016 11:18:48 GMT -8
 so the CP Crooks have LOST !! trying to get NS to buy themselves for CP was really Stooooopid !! think those Clowns have been out in the Glaicers Too Long. but they may have some other dumhead ideas they may act on later ? Spikre 
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Post by Amboy Secondary on Apr 13, 2016 18:11:45 GMT -8
Being headquartered in Alberta,with all the Wildcatters, instead of Montreal, Toronto or NYC, that affects their judgment. For sure, getting hooked up with Ackerman in the first place was a bad decision. I suppose, they can sell off the rest of their CP Railroad, to increase cost savings further.
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Post by Brakie on Apr 14, 2016 5:50:15 GMT -8
Does this mean they'll go back to pursuing the CSX? CP should have chose CSX as a dance partner instead of flirting with NS.IMHO there is only two railroads that might be capable of a dancing with NS and that would be UP or BNSF aka Buy Norfolk Southern First.. |
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Post by Paul Cutler III on Apr 14, 2016 7:48:23 GMT -8
Brakie,
From what I understand, CSX has a "poison pill" defense against any attempted hostile takeover.
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Post by Gary P on Apr 14, 2016 9:34:56 GMT -8
Does this mean they'll go back to pursuing the CSX? CP should have chose CSX as a dance partner instead of flirting with NS.IMHO there is only two railroads that might be capable of a dancing with NS and that would be UP or BNSF aka Buy Norfolk Southern First..Ha-ha-ha, good one!  |
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Post by canrailfan on Apr 14, 2016 9:40:01 GMT -8
Being headquartered in Alberta,with all the Wildcatters, instead of Montreal, Toronto or NYC, that affects their judgment. For sure, getting hooked up with Ackerman in the first place was a bad decision. I suppose, they can sell off the rest of their CP Railroad, to increase cost savings further. From what I've read it seems clear that CP never wanted to be involved with Bill Ackman and Pershing Square. Although not welcomed by CP's executive, Ackman was backed by major institutional shareholders who saw him as being able to increase CP's share value. Ackman succeeded in forcing a vote at the CP Annual meeting in May 2012 that caused the then-current executive to resign. Ackman then effectively took control of the CP Board (he's still a Director), and hired EHH to run the company. CP, as a railroad, has not benefited from the Ackman/EHH regime but it has made the shareholders happy for a while. Problem is that when the "chickens come home to roost" the shareholders will sell off and go somewhere else while the railroad tries to make do with what's left of it's network. In much the same way Ackman is behind the recent attempt to force a shareholder's vote at NS. EHH is just the sock puppet. The trust proposal was a blatant attempt to circumvent the STB and other regulatory bodies. It's good that it failed. Where this leaves CP remains to be seen. I expect Ackman and EHH will desert CP in the not too distant future and look for other opportunities to make money. |
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Post by valenciajim on Apr 14, 2016 10:32:40 GMT -8
Being headquartered in Alberta,with all the Wildcatters, instead of Montreal, Toronto or NYC, that affects their judgment. For sure, getting hooked up with Ackerman in the first place was a bad decision. I suppose, they can sell off the rest of their CP Railroad, to increase cost savings further.
It wasn't their decision. Ackerman's hedge funds bought a huge position in CP and exerted undue influence on the board and management. Ackerman has made several bad bets including Target, Herbalife and now CP.
This is what happened when Wall Street hedge funds take a position in a company to extort short term profits. I'm sure Bernie will be talking about it next week. |
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Post by Amboy Secondary on Apr 15, 2016 11:29:27 GMT -8
Problem with all the hedge Funds and their celebrity managers, is that they don't care how much damage they cause, while making the maximum return.
Nothing inherently wrong with making profits, but...
Come to think about it, Bevan was running his own Hedge Fund back during the end stage of the PRR and the PC. They were called Investment clubs then. He would buy under capitalized companies, then get PC to invest in them, and cash out when the stock price went up. PC was left holding the bag...
Sounds like Ackerman is related to Trump.
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Post by valenciajim on Apr 16, 2016 9:15:22 GMT -8
wjli26--You are right about Penn Central in its later days. It became a holding company like Berkshire Hathaway. It invested in numerous companies--one of which was Six Flags on whose account I worked thirty-five years ago. The acquired a number of tech companies before investing in tech was in vogue. It also invested in energy companies. The Company had considerable real estate holdings, including Penn Station, which were liquidated. It relocated its corporate headquarters to Cincinnati and was ultimately acquired by American Financial Group.
When I started my career in 1974 with the firm I was with for 40+ years, I remember attending a school for rookie accountants conducted at the TWA Flight Attendants Training Facility in Overland Park, KS. (TWA was a client and flight attendants were called stewardesses in those days.) The managing partner of the firm made speech. I remember two things from that speech. He admonished us not to damage the facility and anger our client. He also told us we had two new clients we hoped would survive--Penn Central and the World Football League.
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Post by Spikre on Apr 22, 2016 10:05:30 GMT -8
 V-Jim, Penn Central was BLED Dry to fund their aqusitions. then left to rot and die and get bailed out by the U.S. Tax Payers. but we didn't learn,re-early CR !! early CR was bleed everything in the East to Support a renamed PC. Stoooopidity in DeeeeCeee isn't a new Innovation. Spikre  
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Post by Brakie on Apr 22, 2016 15:18:49 GMT -8
Bob,CR was needed to save Eastern railroads that was on gasping their life away on their death beds while CP/NS isn't needed.
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Post by Spikre on Apr 23, 2016 11:21:49 GMT -8
Larry, don't confuse Eastern RRs with PC,there was a lot more to the East. PC by not paying Pier Diem was a BIG Factor in some of the Roads entering Bankruptcy. EL could have stayed out of CR,but it wasn't given Funds to do so by USRA,which were a drop in the Bucket compared to what PC got almost Monthly. Originally N&W and C&O wanted to divide up PC,that would have been a Great solution. or EL-MARC,why did USRA Bail Out of that Idea ? because its numbers were too good and would have Pearl Harbored PC. but don't say that Eastern RRs were just PC !! Spikre
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Post by Brakie on Apr 23, 2016 12:44:19 GMT -8
Bob,From what I read E-L was financially drained. All Eastern roads that ended up in CR was gasping their last and living on borrowed time. That was covered in Trains Magazine almost on a monthly bases.
PC split by C&O and N&W may have been the better solution but,the Feds had a better idea in their warp mind that would cost tax payers billions.
And in the end who finally got what was suggested for PC? CSX/NS split of CR.
If the Feds thought splitting PC between C&O/N&W was a bad idea why did they allow the CR split even though CR was no longer depending on tax dollars?
If only John G. Kneiling (The Professional Iconoclast) column was around for the CR split..
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Post by valenciajim on Apr 24, 2016 15:54:05 GMT -8
When I was traveling this past week, I noticed an article in the WSJ that CP announced significantly increased profits which were the result of cost cutting. I guess the cvost of the failed NS endeavor was not reflected in the first quarter earnings. CP's CEO must have a sore arm from patting himself on the back so much.
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Post by Spikre on Apr 26, 2016 10:59:29 GMT -8
 Larry, EL was picking up Premium traffic that PC couldn't deliver in a timely manner that pleased shippers. and EL was getting most of the eastbound UPS traffic from several locations, mainly Chicago. not having a line to St Louis did hurt EL,but anywhere that PC and EL went most shippers were giving up on PC by late 75. EL just didn't have the Political Clout that PC had. then there was the Mid-Level ATSF plan to buy EL,but that was rejected by Top ATSF Management. EL just was bowled over by PCs Political friends,something EL just couldn't match in DeeeCeee. Spikre
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Post by Brakie on Apr 26, 2016 11:46:13 GMT -8
Bob,It didn't help when N&W became E-L's "protector" a job N&W did not want since N&W's NKP line was a competitor of E-L.. What was the Feds thinking or was they thinking at all?
Didn't the Professional Iconoclast cover this in one of his columns? I wish I kept all my Trains Magazines from that era.
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Post by Spikre on Apr 26, 2016 14:36:05 GMT -8
 Larry, John Knieling had plenty of PC Colums over the years. most focused on the way PC was burning thru Tax Money, and the Feds were Stoooopid for giving it to them. If Bill White hadn't died before the DERECO Vote,He would have kept both EL and D&H out of DERECO. White was pushing for both EL and D&H to be FULL Merger Partners with N&W. why the Stockholders voted to join a Duluted Dereco is still a mystery,as EL was actually on the Rise before Fishwicke sunk them again. but after the 7/72 Bankruptcy by Fishwicke,EL was out of DERECO and on their own. the 74/75 Recession did hurt EL,and EL Panicked and joined USRA which really didn't want them,until they needed ELs Better than PC track during early CR days. Books have been written about those Dark Days. Spikre
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