|
|
Post by dharris on Feb 21, 2017 17:24:34 GMT -8
|
|
|
|
Post by valenciajim on Feb 22, 2017 1:12:02 GMT -8
You can't say this was unexpected.
|
|
|
|
Post by bnsf971 on Feb 22, 2017 4:37:28 GMT -8
"CSX was founded in 1886 as the Seaboard System Railroad". Really?
|
|
|
|
Post by alcoc430 on Feb 22, 2017 7:17:11 GMT -8
Once Conrail was gone sort of lost interest with real railroads, although I would hate to see CP or CN take them over. Maybe UP or BNSF will step, now that would be interesting.
|
|
|
|
Post by scl1234 on Feb 23, 2017 11:56:11 GMT -8
I believe CSX is too large for the FTC to approve a complete takeover by or merger with any single major (i.e. NS, BNSF, CN-IC, UP, CP, etc.) Rather I think we'll see something similar to a 70/30 or 60/40 split of CSX ...which in itself will be a mess.
|
|
|
|
Post by dharris on Feb 23, 2017 12:31:07 GMT -8
The take over is not from another railroad.
It is Hunter Harrison and a 5% hedge fund owner making an offer he can't refuse.
The current CEO has been paid to retire.
Now he share holders have to vote on installing Hunter and his suite of Directors.
|
|
|
|
Post by valenciajim on Feb 23, 2017 21:05:11 GMT -8
I agree that CSX is not going to merge in the near term. So what is Harrison's exit strategy? Is he merely trying to strip costs hoping to improve profit margins hoping for a bump in share price? Will the strategy used at CP work for CSX? From what I read several analysts say that the CP strategy would result in a decline in service in a market that is less price sensitive than CP's market. If the targeted share price is not achieved, what is the exit strategy?
|
|
|
|
Post by bnsf971 on Feb 24, 2017 4:37:17 GMT -8
I agree that CSX is not going to merge in the near term. So what is Harrison's exit strategy? Is he merely trying to strip costs hoping to improve profit margins hoping for a bump in share price? Will the strategy used at CP work for CSX? From what I read several analysts say that the CP strategy would result in a decline in service in a market that is less price sensitive than CP's market. If the targeted share price is not achieved, what is the exit strategy? At best, I'd say the board will fire him. At worst, NS will get a lot more or CSX's business, and we may see another bankruptcy. Just because money is money, doesn't mean the way it is used in the US is the way it is used elsewhere. I can't remember the number of times a cost-saving was tried, because it worked somewhere else, and failed. |
|
|
|
Post by kentuckysouthernrwy on Feb 24, 2017 8:33:16 GMT -8
The financial and business dealings in modern corporations sure are brutal. I question the ethics but business is business.
|
|
|
|
Post by canrailfan on Feb 24, 2017 13:41:38 GMT -8
It's very possible that Hunter Harrison is still after a CP-CSX merger. He couldn't get it done from the CP end in 2014. Now if he can get in as CEO at CSX he will have his protégé Keith Creel to deal with at the CP end. They are more likely to work together to get an agreement. The new CSX Board may be more agreeable as well. The only objections will come from the regulatory agencies on both sides of the border but this won't stop Harrison from trying.
|
|
|
|
Post by scl1234 on Feb 24, 2017 14:55:51 GMT -8
Like ^David alludes, sometimes you gotta go where the hockey puck is gonna be.  |
|
|
|
Post by sd80mac on Mar 12, 2017 11:12:16 GMT -8
I don't think you'll see a full on merger but I would not be surprised to see CSX and CP start working very closely with each for train movements and traffic routings.
|
|
