A PYMNTS Company

US: The US Army takes aim at Canadian Railroad merger

By  |  April 7, 2016

The US Army said a Canadian Pacific Railway Ltd. takeover of Norfolk Southern Corp. has the potential to harm national defense, adding opposition to a possible merger plan backed by billionaire investor Bill Ackman.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Army told the Surface Transportation Board that it opposed Canadian Pacific’s plan to have Chief Executive Officer Hunter Harrison step down and become the head of Norfolk Southern as part of a voting trust structure before the regulator’s final approval of a merger. Canadian Pacific has asked the board to rule by May 6 if its voting-trust plan is permissible.

    “We are troubled by the possibility that Mr. Harrison could become a senior executive at Norfolk Southern in advance of the board ruling in favor of common control/merger between Canadian Pacific and Norfolk Southern,” according to a letter from the Army. “If Mr. Harrison is a senior executive at NSR he may be placed in a position where he must make business decisions with potentially competing interests.”

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.