House Democrats urge rejection of CP bid for Norfolk Southern
Source: Reuters
Deals | Wed Jan 6, 2016 3:57pm EST
House Democrats urge rejection of CP bid for Norfolk Southern
WASHINGTON
Two senior Democrats in the House of Representatives urged federal regulators on Wednesday to reject any acquisition of railroad operator Norfolk Southern Corp by Canadian Pacific Railway Co.
In a Jan. 6 letter to the Surface Transportation Board, senior Democrats on the House Transportation Committee warned that an acquisition would reduce competition and exacerbate shipper concerns about costs.
The Surface Transportation Board, which can approve or disapprove acquisitions in the railroad industry, could not immediately be reached for comment.
The Canadian company in mid-November disclosed its $28 billion offer to buy Norfolk Southern. It would be the first merger involving a U.S. railroad since the Surface Transportation Board rewrote the rules in 2001 after a wave of consolidation reduced the number of major North American railroads to seven from 35.
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http://www.reuters.com/article/us-norfolk-southern-m-a-cp-idUSKBN0UK29V20160106