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Canada: Pacific Railway wants DOJ to look into talks held by US railroads

By  |  January 19, 2016

Canadian Pacific Railway urged the US Department of Justice to look into statements by US railroad companies about “working closely with each other to block” the company’s proposed takeover of Norfolk Southern Corp.

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    CP’s proposed $28 billion offer to buy Norfolk Southern, disclosed in mid-November, has been spurned multiple times, setting the stage for a proxy battle.

    CP said in its letter to the DOJ released on Tuesday that the “collective communication strategy” adopted by rival railroads was “likely illegal because it is anticompetitive.”

    However, Union Pacific Corp spokesman Aaron Hunt told Reuters on Tuesday the company had “communicated with other railroads for the purpose of petitioning the government.”

    “We oppose this merger and we are prepared to discuss our views with the government,” he said.

    Full content: Reuters

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