CP fires another salvo in rail merger fracas

by The Associated Press (APR)

OMAHA, Nebraska—Canadian Pacific has issued another report supporting its argument for acquiring Norfolk Southern railroad.

Canadian Pacific says combining its railroad with Norfolk Southern would help reduce congestion in the Chicago hub where all the major railroads hand off freight to each other.

Canadian Pacific says the merger would allow it to reroute some trains around Chicago, and some of the work of assembling freight cars into trains could shift to other railyards.

Canadian Pacific continues to build the public case for its proposed merger even though Norfolk Southern has rejected its roughly $30 billion offers as “grossly inadequate.”

Canadian Pacific has said it wants Norfolk Southern’s shareholders to decide whether to move forward.

But even if both railroads agree, the deal will face tough scrutiny from federal regulators.